If AI kills entry-level jobs, the City might not survive

Artificial intelligence has wiped out more than a quarter of all graduate, intern and junior positions in the financial sector – the long-term consequences could be dire, says James Moore

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Remember Robocop, the dystopian Eighties classic in which an evil corporation tried to replace the police with AI-driven death machines? Turns out that the real nightmare of the future might be something even more mundane – Robobank, where automation quietly guts entry-level employment.

The City's enthusiastic embrace of artificial intelligence is leading to a bonfire of entry-level jobs. Figures from job-search website Adzuna reveal that ground-level job openings have plummeted by nearly a third (31.9 per cent) since the launch of ChatGPT in November 2022.

Graduate, intern and junior roles have all been torched. Ditto apprenticeships. Combined, these now account for just a quarter of the jobs market - down from 28.9 per cent in 2022. Part of this will clearly be the result of a spluttering economy, which businesses typically respond to by scaling back investment in favour of cost cuts and cash preservation.

Chancellor Rachel Reeves hasn't helped matters by increasing taxes on jobs and lowering the threshold at which they kick in. That has made lower-paid entry-level roles a lot more expensive for businesses to provide.

Add in AI, with companies like BT, the Big Four accounting firms (Ernst & Young, Deloitte, PricewaterhouseCoopers and KPMG), and City banks formulating plans to slash their costs with its assistance, and you have a perfect storm.