AI’s Rising Tide: Profits Soar, Entry-Level Jobs Sink

Geoffrey Hinton, often called the “godfather of AI,” has warned that the rapid advancement of artificial intelligence will lead to significant unemployment while simultaneously boosting corporate profits. Speaking to the Financial Times, Hinton attributed this shift to the capitalist system, stating that AI will enable corporations to replace workers with machines, resulting in “massive unemployment and a huge rise in profits.” He emphasized that this is not a flaw in AI but a structural outcome of how economies function under capitalism [2].

Hinton's comments align with a growing body of research suggesting that AI is already reshaping labor markets. A Stanford University study found that early-career workers between the ages of 22 and 25 have experienced notable declines in employment in AI-automatable fields such as software development and customer service. The study controlled for factors like education disruptions and interest rate changes but concluded that generative AI is likely a key driver of these trends. A Harvard study further supports this, noting that entry-level hiring at AI-adopting companies has dropped by 7.7% over six quarters since early 2023, while senior roles have remained unaffected [1].

The Federal Reserve Bank of St. Louis conducted a separate analysis and found a strong correlation between the adoption of AI and job losses in occupations that rely heavily on computing and mathematics. However, the study did not examine differences in age groups or experience levels, leaving room for further investigation [1].

Roman Yampolskiy, a computer science professor and AI safety pioneer, has taken an even more dire view. In a recent interview, he predicted that AI could leave 99% of workers unemployed by 2030, with even jobs like coding and prompt engineering at risk. Yampolskiy argued that AI tools and humanoid robots will make human labor uneconomical across nearly all sectors, rendering retraining efforts obsolete [3].

Hinton also dismissed the idea of universal basic income as a solution to AI-driven unemployment, stating that it would fail to address the broader issue of human dignity and the societal role of work. He emphasized that employment provides more than just income—it offers structure, status, and community. If AI eliminates traditional work, he warned, societies will need to create new systems to fulfill these roles. Potential solutions, he suggested, might include universal dividends, civic service programs, and redefined measures of contribution [2].

The economic implications of these developments are vast. As AI replaces entry-level workers, it is likely to concentrate wealth among those who own or control the technology. This has already begun to shift hiring patterns, with some companies reducing their recruitment of young graduates. PwC, for example, has announced plans to recruit a third fewer graduates by 2028 [1]. Such trends raise concerns about long-term economic inequality and the sustainability of current employment models.

While Hinton and Yampolskiy offer stark warnings, some industry leaders suggest the impact may not be as immediate or universal. Experts like Dario Amodei of Anthropic and Sam Altman of OpenAI argue that AI will transform rather than eliminate jobs, creating new roles that may be less traditional but still meaningful. The pace and scale of AI adoption, however, will ultimately determine how quickly these changes manifest and who bears their consequences [3].

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[1] As AI eats entry-level jobs, uncertainty fills the gap (https://fortune.com/2025/09/04/ai-entry-level-jobs-uncertainty-college-grads/)

[2] Geoffrey Hinton says AI will cause massive unemployment ... (https://fortune.com/2025/09/06/godfather-of-ai-geoffrey-hinton-massive-unemployment-soaring-profits-capitalist-system/)

[3] An AI safety pioneer says it could leave 99% of workers ... (https://www.businessinsider.com/ai-safety-pioneer-predicts-ai-could-cause-99-unemployment-by-2030-2025-9)