ServiceNow boss warns AI could push grad unemployment past 30%

Steven

ServiceNow boss warns AI could push grad unemployment past 30%

Summary

ServiceNow CEO Bill McDermott has warned that AI agents could drive unemployment among recent graduates into the mid-30s within a few years, up from roughly 5.6% today. He told CNBC that many routine, early-career tasks will be handled by digital workers — and claimed ServiceNow’s AI can perform up to 90% of tasks in customer service. Independent surveys and studies back the trend: businesses are reducing junior hires in favour of AI, while analysts warn this risks choking the future talent pipeline unless organisations pair automation with deliberate development strategies.

Key Points

  • McDermott predicts graduate unemployment could rise into the mid-30s as AI agents take over routine entry-level work.
  • ServiceNow asserts its AI platform can handle about 90% of customer-service tasks, reducing demand for human hires.
  • Surveys (including a British Standards Institution study) show many organisations have already cut or plan to cut junior roles in favour of AI.
  • Gartner warns of a “pipeline choke”: fewer routine tasks for juniors means fewer chances to gain experience, risking future skill shortages.
  • Organisations are urged to pair AI adoption with robust talent development, reskilling and recruitment strategies to avoid long-term damage.

Context and relevance

The piece sits at the intersection of AI adoption and labour-market shifts. It reflects growing evidence that automation is disproportionately affecting early-career roles across sectors, not just tech. That has implications for universities, employers, HR leaders and policymakers: how to prepare graduates, restructure internships and apprenticeships, and fund reskilling so career pipelines remain healthy as mundane tasks are automated.

Why should I read this?

Short and blunt: if you recruit, train, study or are planning a career, this matters. The article flags a real and near-term risk to graduate employment and explains why simply adopting AI without a talent strategy can bite organisations later. Read it to know what to watch for and where to act.

Author style

Punchy: a major SaaS CEO making stark predictions — backed by surveys and analyst warnings — makes this more than headline-grabbing. It’s a useful wake-up call: skim it for the claim, read it for the evidence and recommended responses.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2026/03/16/servicenow_grad_jobs_ai/