AUSTIN, Texas — Artificial intelligence is reshaping expectations across the global labor market, with nearly two-thirds of workers convinced that companies are scaling back entry-level hiring as automation takes over routine tasks. However, new research suggests that fear and perception may be running well ahead of reality.
According to a survey of roughly 2,000 workers in the United States and the United Kingdom conducted by flexible staffing platform Indeed Flex, 62% of respondents believe AI is actively shrinking entry-level hiring. Yet, when asked about their personal experiences, only 31% reported seeing an actual reduction in entry-level roles within their own fields.
The gap between perception and experience is widest among younger workers entering the workforce. An overwhelming 80% of recent graduates believe AI is reducing early-career opportunities—making them 21% more likely to hold this view than mid-career professionals.
Pay and Competition Still Outweigh AI Fears
Despite widespread headlines about generative AI and workplace automation, job seekers say traditional economic pressures remain their biggest hurdles.
| Primary Obstacle in Today’s Job Market | Share of Respondents |
| Low or inadequate pay | 30% |
| High competition for roles | 25% |
| Lack of required experience | 18% |
| AI replacing roles they qualify for | 9% |
Just 9% of workers ranked AI automation as their single greatest job-search challenge, demonstrating that while automation causes anxiety, pay equity and market competition remain front of mind.
How Job Seekers Are Adapting to the AI Era
While AI may not yet be eliminating roles at the scale many fear, it is fundamentally changing how workers navigate the hiring process. Nearly 60% of job seekers report altering their job-search strategies in response to new technology:
- 22% now use AI tools like ChatGPT to write resumes, cover letters, or applications.
- 14% are applying to roles more selectively.
- 12% are increasing their overall volume of applications.
- 11% are tailoring their resumes more heavily for individual job postings.
Candidate confidence also remains split: 34% of workers say AI has made them feel less confident competing in the labor market, 29% feel more confident, and 37% report no impact on their confidence levels.
“AI is reshaping hiring, but it’s not replacing the fundamentals of what workers care about. People are still looking for competitive pay, stability, and opportunities to build meaningful careers,” said Novo Constare, CEO and Co-founder of Indeed Flex. “What’s changing is how they prepare for those opportunities. Workers are embracing AI as a tool while still expecting a hiring process that’s transparent, fair, and ultimately human.”
Skepticism Around AI Interviews
The report also highlighted lingering distrust toward automated hiring systems. Only 19% of respondents have completed an AI-powered interview during a hiring process.
Among all surveyed workers, 28% believe AI interviews actively hurt candidates, compared to just 10% who believe automated screeners improve the hiring experience. Interestingly, candidates who have participated in AI interviews are more than twice as likely to use AI assistance on their own application materials (29%) compared to those who have not (13%).