AI-native startups are hiring fewer entry-level workers, Harvard study finds - Business Insider

A working paper from Harvard Business School and INSEAD has found that AI-native startups—companies built around artificial intelligence as a core part of their business—are hiring significantly fewer entry-level workers compared to non-AI-native startups. The study offers early empirical evidence of how AI adoption is reshaping the labor market for early-career talent.

The paper reports that AI-native startups are on average 25% smaller in total headcount than comparable non-AI startups. They employ 13% more engineers as a share of their workforce, while the proportion of entry-level workers and managers is each approximately 15% lower. These differences persist after controlling for industry, company age, and funding stage, according to the researchers.

The authors suggest that AI-native firms may rely more on automation and require higher-skilled employees, reducing opportunities for junior hires and mid-level managers. The findings raise questions about career progression as AI-native startups scale. The working paper has not yet been peer-reviewed, but it contributes to ongoing debates about AI's impact on employment and organizational structure. Further research is needed to determine whether these patterns hold as the AI startup sector matures.