ServiceNow CEO: AI could push grad jobless rate above 30%

"It could easily go into the mid-30s in the next couple of years. What's happening now is that for the non-differentiating roles, so much of the work is going to be done by agents. It's going to be challenging for young people to differentiate themselves in the corporate environment."

"ServiceNow's AI platform could handle 90 percent of the tasks that humans used to have to in customer service. He said companies such as Pepsi, Panasonic, and Nvidia were already using the platform. That will definitely put a damper on how many people you need to hire."

"A study from the British Standards Institution found that 39 percent have already reduced junior and entry-level headcount in favor of greater AI adoption. Another 43 percent expect to further reduce entry-level roles in the next year in favor of AI and 50 percent specifically said AI is helping them reduce headcount."

ServiceNow CEO Bill McDermott warns that AI agents performing routine tasks could elevate graduate unemployment from current 5.6 percent to mid-30s within years. Organizations globally are reducing junior and entry-level hiring in favor of AI adoption. A British Standards Institution study found 39 percent of business leaders have already cut entry-level positions for AI, with 43 percent planning further reductions. ServiceNow's AI platform handles 90 percent of customer service tasks previously performed by humans. Companies like Pepsi, Panasonic, and Nvidia already use such platforms. However, Gartner warns disproportionate cuts to graduate roles create a "pipeline choke," eliminating foundational work experience opportunities critical for workforce development.

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