The Vast Majority of Grads Fear AI Is Reshaping the Entry-Level Job Market (and Not in Their Favor)

Editor’s Note: This story originally appeared on Monster.

Artificial intelligence is already shaping how graduates learn, work, and search for jobs. But for many entering the workforce, excitement about AI is paired with uncertainty.

If you’re asking, “Is AI replacing entry-level jobs?”, you’re one of many. According to new research from Monster, nearly 9 in 10 graduates (89%) are concerned that AI or automation could replace entry-level roles, up from 64% in 2025.

At the same time, many students are already using AI tools in school, which highlights a growing gap between exposure to the technology and confidence in using it professionally.

Monster’s 2026 Graduate AI Readiness Report surveyed more than 1,000 recent and upcoming college graduates to better understand how AI is shaping early-career expectations.

Key Findings

Concern about AI replacing entry-level roles is rising: 89% worry AI could replace entry-level jobs, up from 64% in 2025.
AI is already in the classroom: 50% of graduates say they’ve used AI tools in coursework or academic work.
Preparedness is limited: Only 36% say college is preparing them to use AI in the workplace (40% say it isn’t; 24% are unsure).
Workplace anxiety persists: 58% say they feel anxious about using AI tools in future roles.
AI skills feel necessary to compete: 69% believe knowing how to use AI will give them an advantage over other candidates.
Adoption varies in the job search: 32% say they have not used AI during their job search or application process.

AI Is Already Part of the Job Search

Many graduates are already turning to AI tools as part of their job search process.

Respondents reported using AI for job searches and a range of career-related tasks, including:

Job searching: 39%
Resume writing or cover letters: 35%
Interview preparation: 31%
Applying to jobs: 27%
Company research: 26%
Professional skills development: 20%

That said, adoption isn’t universal. Nearly one-third (32%) say they haven’t used AI tools during their job search at all, suggesting that familiarity and comfort levels still vary widely among graduates.

AI tools can help streamline parts of the job search, such as brainstorming resume bullet points or practicing interview questions, but they work best when used as a starting point. Reviewing and personalizing AI-generated content helps ensure applications reflect your own voice and experience.

Exposure Doesn’t Always Mean Confidence

Even though many graduates are already using AI in school, that experience doesn’t always translate into workplace confidence, as the graphic below shows.

More than half (58%) say they feel anxious about using AI tools in future roles. And while half of students report using AI academically, only 36% believe their college education is preparing them to use AI professionally.

This gap suggests that many graduates are encountering AI early but still figuring out how to apply it effectively at work.

Developing basic AI literacy—understanding how AI tools work, when to use them, and how to evaluate their output—can be a valuable career skill across industries.

AI Skills Are Becoming a Competitive Advantage

Despite their AI workplace anxiety and concerns, graduates also recognize AI’s growing role in hiring and the workplace.

Nearly 7 in 10 (69%) say knowing how to use AI tools will give them an advantage over other candidates. As a result, many feel pressure to develop these skills while entering a workforce where expectations are still evolving.

For job seekers, the takeaway is clear: AI may be changing the nature of entry-level work, but it’s also creating new opportunities for those who learn how to work alongside the technology.

The Bottom Line

Graduates are entering an AI-shaped workforce with real exposure to the technology but mixed confidence about how it will affect their careers.

Monster’s research shows a generation preparing to work with AI while still questioning how it will reshape entry-level opportunities. For job seekers, building familiarity with AI tools and understanding how they fit into professional workflows may become an increasingly valuable part of launching a career.