- Graduate unemployment is set to rise as AI agents replace entry-level workers
- Palantir and Amazon already expect human headcounts to decrease
- ServiceNow says AI agents can do customer service work
ServiceNow CEO Bill McDermott has becomethe latest in a long list of business leaders to suggest AI adoption, particularly agentic AI, could product major challenges for entry-level workers.
Speaking with CNBC, McDermott indicated unemployment among college graduates could reach the mid-30% range within just a few years as AI agents begin to replace more entry-level human workers.
As a result, it's making it harder for graduates to stand out in a shrinking market, and we're already seeing this play true with a 5.7% unemployment rate for recent graduates as of late 2025 (per the Federal Reserve Bank of New York).
Graduates are losing out on jobs due to AI
"So much of the work is going to be done by agents. So it's going to be challenging for young people to differentiate themselves in the corporate environment," McDermott said.
Besides graduates, AI also looks to be disrupting other areas in white-collar employment, such as coding and marketing, marking a major shift from previous workforce trends. For example, automation and other industrial revolution changes mostly focused on manual labor, but AI is now affecting knowledge workers.
Palantir CEO Alex Karp has also recently disclosed plans to increase revenue while simultaneously reducing headcount by 10x, while Amazon CEO Andy Jassy has also declared an expectation that the company's headcount could shrink.
"I do think it's coming quicker than people anticipate," McDermott added, though no clear solution was indicated.
ServiceNow's AI tools have already reportedly eliminated around 90% of the use cases that once required human customer service agents.
The company recently posted a 25% year-over-year increase in fiscal full-year revenue – with McDermott noting "there is no AI company in the enterprise better positioned for sustainable profitable revenue growth than ServiceNow."
