ServiceNow CEO Bill McDermott warned that the rapid adoption of artificial intelligence could significantly affect job prospects for entry-level workers. Speaking on CNBC, McDermott said unemployment among recent college graduates could “easily go into the mid-30s” within the next few years as AI agents automate a growing share of workplace tasks.
The warning comes as companies across industries deploy AI systems to improve productivity and reduce operating costs. According to data from the Federal Reserve Bank of New York, unemployment among recent graduates reached about 5.7% at the end of 2025, while underemployment climbed to 42.5%, the highest level since 2020.
Several technology companies have already linked workforce reductions to AI adoption. Firms including Block and Amazon recently announced layoffs while increasing investments in AI-driven automation.
McDermott said ServiceNow’s software can replace many routine corporate tasks, noting that AI tools are already automating a large portion of customer service workflows. He added that the technology allows companies to maintain or even reduce hiring levels while continuing to grow revenue and free cash flow.
