New data shows AI tools are displacing entry-level jobs faster than expected. Warning signs have been circulating for months, and now prominent economists worldwide are issuing a strong alert.
On July 14, 2026, more than 200 economists, researchers, and technology leaders, including Nobel laureates and executives from Anthropic, Google, and OpenAI, signed an open letter titled “We Must Act Now.” The statement warns that while AI “could cause risks such as massive job losses, it could also bring opportunities such as significant improvements in living standards.” The letter, from the Stanford Digital Economy Institute, states that the potential transformation brought about by AI is on a scale exceeding the Industrial Revolution and will unfold in a short period.
This timing is no coincidence. White-collar salaries have been steadily declining for decades, a trend Aaron Terrazas, former chief economist at Glassdoor, points out is unprecedented outside of recessions. While unemployment rates remain flat, labor market researchers argue that this stagnation is not due to official unemployment, but rather to underemployment and labor outflows.
AI Will Take The Entry-Level Jobs First
This shift is particularly evident in the early stages of a career. According to PwC’s “2026 Global AI Job Barometer,” which analyzed over one billion job postings across 27 countries, entry-level positions in AI-related fields now require seven times more skills traditionally considered late-career (such as strategic decision-making, stakeholder management, leadership, and judgment). In the most AI-related fields, 52% of new skills appearing in entry-level job postings were traditionally skills required of experienced workers.
PwC calls this phenomenon “seniorization.” Demand for these seniorized entry-level positions has increased by 35% since 2019, while demand for other entry-level positions has decreased by 10%.
What “Seniorization” Means In Practice
The practical implications are clear. In sectors where AI tools are being implemented, traditional entry-level jobs where new employees learn the basics and build their careers through trial and error are shrinking or disappearing. Companies are seeking individuals who can direct AI, make decisions, and manage stakeholders from day one.
PwC data reveals a more serious structural divide. Jobs “specialized” by AI are growing twice as fast as jobs “democratized” by AI, with wage growth rates 42% higher since 2021. In specialized jobs, AI handles routine tasks, allowing humans to focus on decision-making and expertise. Conversely, in democratized jobs, AI significantly lowers barriers to entry and the required skill levels, resulting in lower wages.
Companies with higher AI tool adoption rates have 40% higher productivity growth than those without. Companies with high AI adoption rates also have higher employee growth rates (52% vs. 36%) and higher wage growth rates (24% vs. 17%) compared to companies with lower adoption rates.
In other words, companies that actively utilize AI tools are growing faster and offering higher wages, but the jobs they create are different from those that AI will replace.
Eric Brynjolfsson, professor at Stanford University and director of the Stanford Digital Economy Lab, argues that “we need to act now to ensure that AI doesn’t simply imitate humans, but complements them, bringing prosperity to many, not just a few.” This open letter doesn’t make specific policy demands, but urges governments and institutions to take safety measures to ensure AI tools complement workers. However, the question of what safety measures should actually be implemented remains unresolved, and policymakers are lagging behind in addressing this issue.
Conclusion
Currently, data suggests that the labor market is already beginning to adapt, but this adaptation is not benefiting everyone equally. Companies and workers who are in a position to utilize AI tools are ahead, but those who are not are finding fewer doors opening up at the bottom of their careers.
Source: LA Times