ServiceNow CEO Predicts AI Could Push College Graduate Unemployment Above 30%
ServiceNow CEO Bill McDermott believes AI agents are evolving from assistive tools into a digital workforce capable of independently handling customer service, administrative and analytical tasks. If companies replace entry-level positions with automation, college graduates could lose a crucial route to gaining experience and find it harder to distinguish themselves in an AI-driven workplace. The impact could therefore extend beyond layoffs to reshape talent development and recruitment.
McDermott warned in 2026 that unemployment among college graduates could rise above 30% in the coming years. Even without a recession, employment conditions for the class of 2026 could still hit a record low. The discussion cited fintech company Block as an example, saying businesses had begun cutting jobs through AI automation and that pressure on entry-level white-collar work was shifting from forecast job losses to actual layoffs.
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The history behind this event99% of CEOs Expect AI-Driven Job Cuts, With Young Workers’ Entry-Level Roles Most Exposed
A global survey by human-resources consultancy Mercer shows that corporate adoption of generative AI is moving beyond efficiency gains toward a redesign of jobs. Entry-level roles, which traditionally provide training and experience, are drawing the greatest concern. If these positions are automated first, traditional pathways for young people to enter the workforce, build skills and advance their careers could be disrupted.
The latest findings show that 99% of surveyed CEOs expect AI to reduce headcount within two years of the survey. More than 90% of companies have deployed AI, but only 27% of CEOs believe returns on investment have met expectations. Mercer did not disclose the survey’s exact publication date or any investment amounts in the event data, indicating that the results of accelerated automation have yet to be widely validated.
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