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By Suzanne Blake
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While many businesses are dialing back hiring due to advancements in artificial intelligence (AI), International Business Machines Corporation (IBM) is ramping up its hiring of Gen Z workers, planning to triple entry-level hiring in 2026, Bloomberg reported on Thursday.
Why It Matters
AI has threatened jobs across industries, and job growth has stalled nationwide in recent months because of it.
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While Gen Z, those who were born between 1997 and 2012, has struggled to find their footing in the job market after graduating from universities, IBM stands out for its decision to hire in roles that many other businesses appear to be phasing out.
What To Know
IBM plans to triple its entry level hiring this year, the company announced at the Charter’s Leading With AI Summit this week.
“And yes, it’s for all these jobs that we’re being told AI can do,” Nickle LaMoreaux, IBM’s chief human resources officer, said, adding that the entry-level jobs are different in nature than what IBM hired for in the past.
“The entry-level jobs that you had two to three years ago, AI can do most of them," she added. "So, if you’re going to convince your business leaders that you need to make this investment, then you need to be able to show the real value these individuals can bring now. And that has to be through totally different jobs.”
As AI takes over routine coding, the junior software developers will spend more time working with customers.
Across business sectors, company leaders have been warning that AI could obliterate around half of all entry level jobs, with some estimates for as early as 2030.
“IBM appears to be taking the long view, getting younger talent in the door now and building the infrastructure to retain them over time,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “While many companies are playing checkers with short-term labor decisions, IBM is playing chess and thinking several moves ahead.”
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What People Are Saying
An IBM spokesperson told Newsweek: "Our entry-level hiring is not just specific to Gen Z. Entry-level jobs are not defined by Gen Z or any specific age category. They are defined by the nature of the role, and could be appropriate for recent graduates, career‑returners reentering the workforce, and individuals pivoting or reinventing their careers through skills‑based pathways. And we continue to hire for seasoned expertise while also building a strong pipeline of talent."
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: “A company like IBM increasing their hiring of entry-level employees is a very promising development. The recent concerns around AI have become a downward spiral—if AI could replace all entry-level jobs, then there won’t be anyone to promote to mid-level jobs, there won’t be anyone to eventually take over the business, and we all become slaves to robots. This is showing that just like in the past, at least for the moment, jobs will be available, they just look different.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “Recent discussions of IBM expanding its entry level position openings will go some way in easing fears AI is going to replace the majority of roles at major companies. While most of the discussion about AI's effects on the labor market have been labeled under doom and gloom, IBM is tapping into the potentially upside of the situation: the elimination of some jobs by AI could lead to new jobs being created that need more human assistance.”
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “With a growing surplus of entry-level Gen Z workers, wage pressure will likely remain muted simply due to supply. This gives IBM the flexibility to promote internally, develop talent earlier, and maintain a younger workforce for longer. More broadly, it signals a bifurcated labor market: companies investing in future talent pipelines versus those relying on automation and AI to reduce headcount.”
What Happens Next
While some companies will continue to utilize AI to make job cuts overall, others like IBM likely will shift what their job roles entail as a result of the technology.
“Some companies have actually reversed course on customer service being fully automated, for example, as customers have voiced continued appeals to speak to ‘an actual human’ to handle their issues,” Beene said. “It's a rare ray of light in these times when most headlines indicate a grim future for AI's impact on human labor.”
Update 2/17/2026 9:50 a.m. ET: This article has been updated with comment from IBM.
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