AI Is Changing How Law, Finance, and Consulting Firms Recruit Entry-Level Talent

Artificial intelligence is reshaping the way professional services firms approach entry-level hiring, according to an analysis highlighted by the Financial Times. Instead of simply reducing junior positions, organizations in law, consulting, and investment banking are redesigning graduate recruitment, early-career training, and workplace practices to support AI-assisted workflows.

The report notes that entry-level job postings in the United States declined by around 35% between January 2023 and mid-2025, based on data from Revelio Labs. Firms are increasingly viewing this shift as part of a long-term transformation rather than a temporary hiring slowdown.

Traditionally, these industries relied on large groups of junior professionals to handle repetitive work such as legal research, document review, financial analysis, and drafting reports. As AI systems take on many of these responsibilities and improve the efficiency of senior employees, the long-standing staffing model is being restructured.

The report also references research from Harvard economists Seyed Hosseini and Guy Lichtinger, which found that companies adopting generative AI have significantly reduced entry-level hiring while continuing to expand senior-level employment.

McKinsey & Company was cited as one example of this transition. CEO Bob Sternfels said the firm now operates with approximately 40,000 employees alongside 25,000 AI agents, which collectively saved about 1.5 million hours of search and research work during 2025.

Since January 2026, McKinsey has been testing a revised final-round interview process for business analyst candidates. Applicants are asked to use the firm's internal AI platform, Lilli, to evaluate a case study. Recruiters assess how candidates interact with the AI, review its responses, and apply their own judgment to produce well-supported conclusions. According to the report, the emphasis is on effective decision-making while working with AI rather than technical expertise alone.

The analysis also states that Boston Consulting Group is developing a similar AI-supported interview process, while Bain & Company is reportedly planning a comparable approach for future recruitment.