AI impact: McKinsey report says nearly 30 percent of companies are considering hiring less junior employees
According to McKinsey’s latest global survey, nearly 30 percent of organizations expect to hire less junior-level employees in the coming year as they expand the use of AI tools and automation.

As artificial intelligence continues to transform workplaces, a growing number of companies are rethinking their hiring strategies. According to McKinsey’s latest global survey, nearly 30 percent of organizations expect to hire less junior-level employees in the coming year as they expand the use of AI tools and automation.
The report, which surveyed thousands of executives around the world, claims how businesses are now shifting their focus from experimenting with AI to integrating it into core functions. However, adoption is still uneven. According to the report, two-thirds of respondents said their organizations have not yet scaled AI across the enterprise and remain in the pilot or experimentation phase.
At the same time, curiosity about AI agents – systems that can plan and execute tasks autonomously – is rapidly growing. About 62 percent of respondents said their companies are already experimenting with AI agents, while 23 percent have started incorporating them into at least one business function. The technology is beginning to gain momentum in IT and knowledge management, especially in areas such as technology, telecommunications, and healthcare.
When it comes to the impact on jobs, views appear divided. Nearly a third of companies expect their overall workforce size to decrease over the next year due to AI deployment, while 43 percent expect no change and 13 percent even expect new roles to be created. Large enterprises, especially those that are already expanding AI, are expected to see cuts in traditional roles, primarily junior positions that are now being automated.
Interestingly, McKinsey data also points to a wave of new hires, albeit in different skill categories. Many organizations, especially larger organizations, have reported adding AI-related roles such as software engineers, data scientists, and machine learning specialists in the past year. This shows that while some entry-level or repetitive jobs may be in decline, the demand for technical and AI-literate talent is growing rapidly.
The study also highlights how “AI high-performing companies” – companies that derive substantial value from AI – differ from others. These companies are using AI not just to cut costs but to boost innovation and growth. Nearly half of them are redesigning their workflows, and three in four have either expanded or are expanding AI initiatives in their businesses. In contrast, most companies still regard AI as a cost-saving tool rather than a transformative one.
While the enterprise-wide financial benefits of AI are still limited, 64 percent of respondents said it has already improved innovation, and many also reported improved customer satisfaction and competitive position. However, only 39 percent have seen measurable EBIT (earnings before interest and taxes) impact at the enterprise level.
McKinsey says the companies having the most success have senior leaders actively promoting AI adoption and have invested heavily in talent and infrastructure. More than a third of these high performers spend more than 20 percent of their digital budget on AI initiatives.




