Artificial intelligence could eliminate half of all entry-level white-collar jobs within the next five years, the CEO of American AI research company Anthropic, Dario Amodei has warned.

In a statement to Axios published on Wednesday, Amodei, who co-founded Anthropic and is a former OpenAI executive, said he hopes to jolt the US government and fellow developers into preparing for the consequences of rapid automation.

AI development companies are already working on systems that could soon replace workers in technology, finance, law, consulting and other white-collar professions, particularly entry-level positions, Amodei claimed.

The public and politicians are still "unaware" that a major shift is about to happen and insisted that companies and officials needed to stop "sugar-coating" what lies ahead, particularly for younger workers.

Earlier this month, a report by the Linux Foundation, commissioned by Meta, found that open source AI is already transforming the economy by boosting efficiency, innovation, cost savings, and revenue gains.

However, Amodei has expressed concern that people could continue to stay ignorant of the threat of being replaced by AI, especially if the US government chooses to stay silent on the issue out of fear of spooking workers or falling behind China.

Soon, "almost overnight," business leaders will see savings in replacing humans with AI and implement a change "en masse." They will stop opening new jobs or backfilling existing ones, and replace human workers with automated alternatives, Amodei claimed.

He has proposed several mitigation strategies, including a special index to track AI's impact across occupations, and briefings for lawmakers to raise awareness. He also suggested a "token tax" — a system where a percentage of AI-generated revenue would be redistributed by the government.

Amodei's warning comes as a number of major companies have recently started laying off a considerable amount of workers, which some believe is being done in anticipation of major shifts due to AI.

Earlier this month, Microsoft fired some 6,000 workers, mostly engineers, despite reporting strong sales and profits. Walmart has cut 1,500 corporate jobs to "simplify operations" while Crowdstrike - a Texas based cybersecurity company - has slashed 500 positions citing "a market and technology inflection point, with AI reshaping every industry."

The number of job opportunities for young professionals in AI-affected sectors across the US has dropped by 13% over the past three years, according to a report from the Stanford Digital Economy Lab. Researchers cautioned that smart technologies are swiftly reshaping career prospects for entry-level workers.

This figure adds to growing concerns that recent college graduates are struggling to find work in fields which are shrinking due to automation. The report, 'Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence,' warns that these early signs may indicate broader labor market disruptions as AI adoption accelerates.

The study identifies software development, customer service, accounting, and administrative support as the most affected industries.

The impact is especially strong among workers aged 22 to 25, with employment in these roles declining by 6% since late 2022. Entry-level software developers have been hit hardest, facing a 20% drop in job postings for their age group.

In contrast, more senior employees appear to be less affected. In fact, in the four most vulnerable industries, employment among older workers has increased 6-9% since 2022.

Meanwhile, in sectors less exposed to AI-driven automation, such as logistics, maintenance, and other hands-on fields, the number of entry-level positions for young workers has grown 6-13%.

The report also highlights that employment is declining among young professionals in roles where AI primarily automates tasks, while growth is occurring in occupations where it plays a more supportive role.

Researchers examined whether other economic factors might explain these shifts, but concluded that AI-driven automation is the primary culprit driving the trend.

These changes became most noticeable in late 2022, coinciding with the rapid rise of generative AI tools. The public launch of ChatGPT in November of that year marked a turning point, according to the study, and is seen as a major driver of recent adjustments in the labor market.

The report draws upon data from ADP, the largest payroll software provider in the US, which tracks millions of workers across tens of thousands of firms.