As organizations accelerate the adoption of automation in recruitment and operations, a new Korn Ferry report highlights a risk that human resources leaders cannot afford to ignore.

The report authors warn of a “pipeline crisis tomorrow,” adding that “your board loves the cost savings today. They’ll hate the leadership crisis it brings on its tail.”

Why entry-level roles are critical

According to the 2026 Talent Acquisition Trends survey, 37% of companies plan to replace entry-level roles with AI, while operations and back-office positions are even more affected, at 58%.

Korn Ferry emphasizes that entry-level employees are foundational to an organization’s future leadership pipeline. These roles provide early-career talent with opportunities to learn the business from the ground up, develop institutional knowledge and acquire skills essential for mid-level and senior positions.

“It would be a mistake to stop hiring young, entry-level people,” wrote David Ellis, senior vice president of talent transformation at Korn Ferry. “These are the fastest adopters of new technology.”

The report authors elaborate: “Entry-level and back-office positions aren’t just about getting routine work done. They’re where people learn your culture, understand your processes and develop the institutional knowledge that makes them valuable leaders later.”

While reducing entry-level hiring may produce short-term efficiency gains, the report warns it also creates the risk of future leadership gaps. Without sufficient early-career talent, organizations may find themselves with a shortage of experienced leaders who understand the culture, operations and workflows of the business.

Entry-level employees often form the core of future supervisors, managers and executives. Eliminating these roles can compromise the talent flow needed to sustain leadership continuity over time, according to the research.

Balancing automation with human talent

Korn Ferry suggests that organizations should balance efficiency gains from automation with investments in human talent development. Maintaining entry-level roles while redesigning them to work alongside AI can provide early-career employees with exposure to emerging technologies and prepare them for future leadership responsibilities.

The survey stresses that early-career roles are vital for maintaining organizational knowledge and culture. Employees starting in entry-level roles develop a deep understanding of company processes and practices. This knowledge cannot be easily replaced by technology. By maintaining these roles and pairing them with structured development programs, organizations safeguard the expertise needed for long-term success.

The Korn Ferry report frames entry-level cuts as a strategic concern, not just an operational decision. “Entry-level employees are cheaper, more adaptable and better at adopting new technology,” the report authors note. “They might be exactly what you need in an AI-driven world.”