22% Companies Stop Hiring Freshers Due To AI - Gartner Study


Mohul Ghosh

Mohul Ghosh

Aug 04, 2026


Artificial intelligence is beginning to change how companies recruit fresh graduates and early-career professionals. According to a new Gartner survey, 22% of Chief Human Resources Officers (CHROs) said that at least one business leader in their organisation has stopped hiring for entry-level roles because AI is automating many routine tasks traditionally handled by junior employees.

The findings indicate that AI is influencing workforce planning, 22% Companies Stop Hiring Freshers Due To AI – Gartner Study

AI Adoption Is High, But Business Impact Remains Limited

The Gartner survey, conducted in the fourth quarter of 2025, covered 110 heads of HR. It found that 95% of organisations had implemented AI in some form over the previous year.

However, despite widespread adoption, only one in five organisations reported achieving significant or transformational business value from their AI investments. This suggests that while AI deployment is accelerating, many companies are still working to unlock its full potential.

Why HR Leaders Are Concerned

Gartner warned that eliminating entry-level hiring could create serious long-term workforce challenges. Without junior employees entering the organisation, companies may struggle to develop future managers and specialists from within.

The research highlights several risks, including higher recruitment costs, fewer opportunities for employees to gain practical workplace experience, reduced institutional knowledge, and greater pressure on new hires to handle complex responsibilities much earlier in their careers.

Instead of removing entry-level positions altogether, Gartner recommends redesigning these roles so employees can contribute to higher-value work with the support of AI.

Three Key Priorities For Employers

The report advises HR leaders to focus on three major areas. First, organisations should identify suitable tasks that AI can automate while shifting meaningful work to early-career employees.

Second, companies should strengthen team-based learning. A separate Gartner survey of 3,086 employees conducted in December 2025 found that workers were 3.8 times more likely to feel well-prepared when they developed adaptable skills.

Finally, organisations should create stronger development support systems by providing practical guidance, coaching, and structured learning opportunities for employees entering increasingly AI-enabled workplaces.

Preparing For The Future Workforce

Rather than replacing junior employees with AI, Gartner believes organisations should use AI to transform entry-level roles into opportunities for faster skill development. Companies that continue investing in early-career talent are expected to build stronger internal leadership pipelines while remaining better prepared for future workforce demands.

Summary

A Gartner survey found that 22% of CHROs said their organisations have reduced entry-level hiring because of AI automation. While 95% of organisations have adopted AI, only one in five report significant business value. Gartner warns against eliminating graduate hiring and instead recommends redesigning entry-level roles, strengthening workplace learning, and investing in long-term talent development.

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Mohul Ghosh
Mohul Ghosh
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