AI Threatens College Grads: McDermott's Warning

0:00Durham's story is making news on March 16. Service now CEO Bill McDermott warned that unemployment for new college graduates could climb into the mid-30s percent over the next couple of years. He blames AI agents for placing traditional entry-level jobs that help young people break into the workforce. Speaking on CNBC back on March 13th, he pointed out the current under-employment rate for grads sits at 42.5 percent, the highest. As 2020, at his own company ServiceNow, they've already automated 90 percent of customer service tasks previously done by humans. This less than keep the same number of employees while boosting revenue and free cash flow. McDermott says many other CEOs are likely thinking the same way, seeing it as a smart path to more value for shareholders. The shift hits hardest at white college starting roles like data entry, basic analysis, customer support, and IT requests. These jobs once built key skills for career growth, but now companies wonder why higher

1:01when AI handles it all at low-fix costs. Young grads face a tougher climb without that essential on-ramp to gain experience. Meanwhile, other big firms are acting fast on AI. Block slashed about 40 percent of its workforce in February, directly linking it to automation. At Lassian cut 10 percent of staff around March 11th to invest in AI, Amazon trimmed corporate roles, and Palantir grows revenue without adding. Headcount, all crediting AI tools. McDermott urges new grads to stand out by focusing on human strengths, like judgment, deep expertise, relationship building, and skills to design and manage AI systems. He stresses treating AI fluency as a must-have baseline, not optional since the job market won't slow down for anyone. The Daily News Now is presented by our sponsor. Comfort you can hear. Sound you can relax into, S-O-L-I, solely pillow.com.