Recent graduates are most likely to believe AI is shrinking entry-level hiring, yet workers continue to prioritize pay and job stability above automation.
As artificial intelligence continues to reshape hiring, nearly two-thirds (62%) of workers believe companies are lowering entry-level hiring because AI is replacing routine tasks, according to new research from Indeed Flex. Yet far fewer workers report seeing that impact firsthand, suggesting perception may be outpacing reality as AI transforms the labor market.
The survey of nearly 2,000 workers across the U.S. and U.K. found that while 62% believe companies are reducing entry-level hiring due to AI, only 31% say AI has actually reduced entry-level opportunities in their own field.
Despite growing concern over AI, workers continue to rank traditional employment challenges ahead of automation. Nearly one-third (30%) cited pay as their biggest obstacle in today’s job market, followed by competition (25%). Just 9% said AI replacing roles they qualify for is currently their greatest challenge.
The findings suggest that while AI is influencing how workers think about the labor market, it is changing how people search for jobs more than what jobs they pursue.
Nearly one in four workers (22%) now use AI tools like ChatGPT to assist with resumes, cover letters or job applications. In fact, 59% report changing their application process in some way:
- 22% use AI tools like ChatGPT
- 14% apply more selectively
- 12% apply to more jobs than before
- 11% tailor resumes more heavily per role
“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.”
The survey also found that AI is creating uncertainty among today’s workforce:
- 34% say AI has made them feel less confident about competing in today’s job market.
- 29% say AI has made them more confident.
- 37% say AI has had no impact on their confidence.
While AI adoption continues to grow among employers, workers remain cautious about AI interviews.
Only 19% of respondents have completed an AI-powered interview during the hiring process. More than one-quarter (28%) believe AI interviews hurt candidates, while only 10% believe they improve the hiring experience.
Additional Findings
- Four in five (80%) recent graduates believe AI is reducing entry-level hiring, making them 21% more likely than mid-career professionals to have that belief.
- Workers who have completed an AI-powered interview are more than twice as likely to use AI tools during the application process (29%) than those who don’t expect to complete an AI interview (13%).
To learn more about flexible work, visit indeedflex.com.
Survey Methodology
Indeed Flex surveyed approximately 2,000 workers across the United States and United Kingdom in June 2026 to better understand how artificial intelligence is influencing hiring perceptions, job-search behaviors and workforce confidence.
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