New CEMS AI Insight Report: The Missing Rung: AI and the Future of Entry-Level Jobs

Keep hiring graduates, or risk the next generation of responsible global leaders! Companies that cut entry-level hiring in favour of AI risk breaking the pipeline through which they grow responsible, innovative leaders, and eroding the culture that takes many years to build, argue contributors to a major new global report from CEMS, the Global Alliance in Management Education.
The Missing Rung 2026

The report argues that this moment provides a rare opportunity for graduates and employers alike. AI-fluent Graduates can be advocates for new technology and evidence-based problem-solvers who can help drive change across companies, at a time when in-house experience is still scarce.

The report, The Missing Rung? AI and the Future of Entry-Level Work, draws on interviews and research with students in more than 20 countries, alongside contributions from senior corporate partners (global multinational companies) and expert academics across the CEMS alliance.

According to report contributors, entry-level recruitment is where companies grow the leaders they will rely on for decades to come. Graduates hired today are the senior leaders of tomorrow, developing the judgement, responsibility and independent thinking that no organisation can shortcut. 

The bottom rung of the ladder is changing, not disappearing

Despite widespread global fears around graduate roles being replaced by AI, contributors to the report argue that in most cases the bottom rung of the career ladder is not missing, it is changing shape. Routine drafting, data pulls and first-pass analysis are being absorbed into AI-managed workflows, but new roles are forming around them.

This supports data from CEMS’s corporate partners which contradict some of the more doom-laden predictions about AI and graduate jobs. Gartner data shows fewer than 1 percent of the 1.4 million layoffs recorded in 2025 were attributable to AI productivity gains, while Bain & Company found AI-related job postings have grown 21 percent a year since 2019.

Other key findings:

  • AI is a golden window for graduates, not a lost opportunity: nobody has a decade of experience with today’s AI tools, so motivated graduates can become a team’s go-to expert within months rather than years.
  • Graduates must put in the work: doing the minimum is not enough to secure a graduate role, as using AI is now the baseline. Graduates who stand out will be able to prove they are a “Builder” who can stitch AI tools into something that works end-to-end, a working demo, a personal project or a mock start-up.
  • Identity and judgement will be differentiators: a strong sense of self, built through real-world experiences with genuine stakes such as sport, travel or volunteering, is what will enable graduates to use AI ethically, develop resilience, and stand out in a job market saturated with AI-generated sameness.
  • Business schools and universities must embrace AI: rather than restricting AI, educators should embed it firmly into teaching and assessment, whilst redesigning coursework so that each student’s own reasoning and judgement remain visible. Partnerships with industry will be vital to stay ahead of the latest technological developments, as the business world moves faster than the academic calendar.
The Missing Rung 2026

How is AI reshaping the first steps of a career?

Drawing on insights from students in more than 20 countries, CEMS Corporate Partners and academics across the alliance, our new report explores what AI means for entry-level work. It looks at the risks of cutting graduate hiring, the new opportunities emerging for AI-fluent talent, and how companies and universities can prepare the next generation of responsible global leaders.

Download the CEMS AI Insight Report 2026