ANN ARBOR – Artificial intelligence may be quietly eliminating the first rung on the career ladder — and the impact could soon be felt across Michigan’s economy.

A new national survey from Resume.org finds that 21 percent of companies have already stopped hiring entry-level workers because of AI, while 36 percent expect to stop hiring them by the end of 2026. Nearly half of employers (47 percent) say entry-level hiring could disappear entirely at their company by 2027.

For a state like Michigan — where universities graduate tens of thousands of students each year and industries rely heavily on young talent — the shift could reshape how careers begin.

Michigan’s economy is already undergoing massive technological change driven by automation, artificial intelligence, robotics and advanced manufacturing.

The question now facing employers, universities and policymakers is simple: If entry-level jobs disappear, how will the next generation gain experience?

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Michigan’s Economy Faces Major AI Transformation

Michigan leaders have already warned that artificial intelligence could dramatically reshape the state’s workforce.

A recent analysis tied to Michigan’s statewide AI workforce strategy estimates that as many as 2.8 million jobs across the state could be affected by AI over the next decade.

At the same time, AI could generate tens of billions of dollars in new economic activity and more than 100,000 new technology-related jobs.

But those new positions will likely require significantly higher skills than traditional entry-level roles.

“This is going to be one of the biggest workforce transitions Michigan has seen since the automation of manufacturing,” said Lou Glazer, president of the Michigan Future Inc. economic think tank, in previous workforce discussions.

“The jobs will still exist — but they won’t look the same.”

Entry-Level Jobs Are Often First To Disappear

Entry-level jobs are particularly vulnerable because many involve repetitive tasks that AI can now perform faster and cheaper.

Those tasks include:

  • Data entry and analysis

  • Basic coding and research

  • Customer service responses

  • Administrative work

  • Report writing

Generative AI systems can now complete many of these assignments in seconds.

The Resume.org survey found:

  • 21% of companies have already stopped hiring entry-level workers because of AI

  • 36% plan to stop hiring them by the end of 2026

  • 47% say entry-level hiring may disappear by 2027

Even more concerning for workers, 51 percent of companies say layoffs related to AI are expected this year, according to the survey.

While these numbers reflect national trends, Michigan’s workforce could be particularly exposed due to its concentration in industries rapidly adopting AI.

Michigan Companies Are Already Deploying AI

Some of Michigan’s largest employers are already integrating artificial intelligence into core operations.

Automotive Industry

Automakers including Ford Motor Company and General Motors are investing billions in AI-driven manufacturing systems, robotics and predictive analytics to improve efficiency and reduce production costs.

AI systems are increasingly being used for:

  • predictive maintenance on factory equipment

  • automated quality inspections

  • supply chain optimization

  • software development for connected vehicles

Many of these functions once required teams of junior analysts and engineers.

Technology Sector

Michigan’s growing tech ecosystem — particularly in Ann Arbor and Detroit — is also seeing rapid AI adoption.

Companies are using AI for cybersecurity monitoring, software development and automated data analysis.

Even startups are increasingly relying on AI tools to perform work that previously required several employees.

Healthcare

Healthcare providers across the state are deploying AI to assist with diagnostics, billing, scheduling and medical documentation.

These technologies are reducing administrative workloads but also eliminating some entry-level positions in healthcare administration.

Michigan Universities Produce Thousands Of Graduates

Each year, Michigan universities produce tens of thousands of graduates entering the workforce.

Major institutions include:

  • University of Michigan

  • Michigan State University

  • Wayne State University

Many graduates historically began their careers in entry-level roles where they learned workplace skills and industry knowledge.

But if those roles shrink, employers may increasingly expect new hires to arrive with advanced skills immediately.

That could put pressure on universities to expand programs in artificial intelligence, data science, cybersecurity and automation.

Michigan’s Digital Skills Gap

Another challenge is Michigan’s growing digital skills gap.

Research from workforce organizations shows that nearly 90 percent of jobs in Michigan already require some level of digital skills, yet many workers still lack training in advanced technologies.

This gap could widen as AI becomes embedded across industries.

Workers who understand how to use AI tools — rather than compete with them — may become dramatically more productive.

That means future employees may need skills such as:

  • AI prompt engineering

  • data analytics

  • cybersecurity

  • automation management

  • advanced software development

Workers without those skills could find it harder to enter the workforce.

A Broken Career Ladder?

For decades, entry-level jobs served as training grounds for future leaders.

Young employees gained experience, learned industry practices and gradually moved into management roles.

But if companies eliminate too many junior positions, they risk weakening their own talent pipeline.

Economists warn that companies may eventually face a shortage of experienced workers if fewer employees gain early career training.

“We still need people learning the business,” one workforce analyst recently noted. “AI can help workers — but it can’t replace human judgment and leadership development.”

The New Career Reality

Despite the disruption, many experts believe AI will ultimately create new jobs even as it eliminates others.

Throughout history, technological revolutions — from industrial machinery to computers — have transformed the labor market in unpredictable ways.

Artificial intelligence may follow a similar pattern.

But one reality is already emerging:

The traditional entry-level job may no longer be the starting point for many careers.

Instead, tomorrow’s workforce may need to arrive AI-ready from day one.

For Michigan workers entering the job market, the message is becoming clear:

Learn how to use artificial intelligence — or risk being left behind.