Nearly Two-Thirds of Workers Believe AI Is Reducing Entry-Level Hiring, According to Indeed Flex Survey 

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.