AI replaces entry-level employees

In US companies, ChatGPT and other artificial intelligence (AI) programs are increasingly taking over tasks previously assigned to recent graduates, such as creating PowerPoint presentations or simple reports for clients, writes the SonntagsZeitung. Swiss companies are also keen to take advantage of the rapid progress of this technology. According to a study by the recruitment firm Manpower published Wednesday, more than half of them plan to increase their investments in automation. This means that there may soon be fewer or no need for junior lawyers or junior marketing employees.

In the United States, the unemployment rate for college graduates has already jumped to a high 5.8%. But this is not yet reflected in Swiss unemployment figures, and no company has officially cut junior positions due to advances in IT. However, the fact that AI is transforming the world of work in Switzerland is undeniable.

Insurers such as Helvetia, Axa, and Zurich Insurance are increasingly using this technology, particularly in customer service and claims management. "AI currently makes work easier and supports our employees; it doesn't eliminate jobs," says an Axa spokesperson. Zurich Insurance, for its part, expects artificial intelligence to initially impact repetitive back-office processes.

Office work in the future will involve directing and controlling AI, according to the German-language Sunday newspaper. But how can young people acquire the necessary knowledge if entry-level positions are disappearing? The question is generating much debate, particularly in finance. In the United States, banks such as Goldman Sachs and Morgan Stanley were already talking about reducing the number of junior analysts by two-thirds in 2023 and lowering their salaries, arguing that their work has become less demanding thanks to AI. Across the Atlantic, there is already talk of an "AI job apocalypse," and predictions of an unemployment rate of up to 20 percent over the next five years.