New report shows AI-adopting firms are more likely to create entry-level roles than non-AI ones
Companies that are implementing AI tools at the core of their business are more likely to increase entry-level positions, according to a new report, disputing warnings that AI adoption will lead to a drop in entry-level roles.
Employment Hero's AI Paradox at Work report found that Kiwi companies with AI at the core of their business operations increased entry-level positions by 50%.
This is much higher than the 23% of firms that are slower to adopt the technology.
The findings challenge recent reports that AI adoption will lead to a drop in entry-level roles, as the technology automates many of their tasks.
The Employment Hero report, however, found 68% of firms are expecting positive workforce change over outright cuts, including 50% who expect existing roles to be refocused.
According to the findings, only 19% of businesses expect their workforce to remain the same over the next 12 months.
Replacement anxiety hits Kiwis
The findings come in the wake of replacement anxiety hitting the workforce, with 34% of workers saying AI is making them feel more replaceable.
More than a third of employees (36%) also believe AI is making them more vulnerable to layoffs, while another 42% agree that using AI too much shows they aren't needed.
Employment Hero, however, pointed out that the replacement anxiety figures in New Zealand are the lowest across the markets that it researched.
"The combination of optimism and low anxiety means that the Kiwi workforce is in a strong position to make the most of AI. The question is whether the organisations they work for are set up to match that energy," the report said.
Addressing replacement anxiety at work
The findings present employers in New Zealand with the opportunity to address the replacement anxiety that is stirring in the workforce.
Meditopia, a global mental wellness platform, recently outlined steps that HR leaders can execute to manage AI anxiety at work. They include:
- Communicate early and transparently by sharing updates on what is known and even what is unknown, as well as when updates will come
- Focus on augmentation and not replacement
- Invest in skill-building that feels achievable
- Create psychological safety guardrails
- Reduce fear of missing out (FOMO) with clear rules and equitable access
Employment Hero's findings also indicate that firms making the biggest changes are not the ones that remove people, but those that use AI to change what their people do in their working hours.
It cited the case of Eliot Sinclair, a 90-person South Island engineering consultancy, which has been using AI for the past two years to remove repetitive tasks and allow workers to carry out higher-value work.
"Our goal with AI is not to replace people; it's to get them to do better work, be better supported and help them with things that they find mundane and repetitive," said Darren Hocken, director at Eliot Sinclair.
