Matt Garman, CEO of Amazon Web Services (AWS), has issued a stark warning to business leaders considering replacing entry-level employees with artificial intelligence tools, calling it “one of the dumbest things I’ve ever heard.” Speaking on the “Matthew Berman” podcast published Tuesday, Garman argued that junior employees represent critical long-term investments for companies, despite being the least expensive workers.
Garman’s comments come amid growing concerns about AI’s impact on entry-level tech jobs. He emphasized that junior staff are often the most enthusiastic adopters of AI tools and questioned the sustainability of replacing them: “How’s that going to work when you go like 10 years in the future and you have no one that has built up or learned anything?” The AWS chief advocated for continued hiring of graduates and teaching them fundamental skills like software development, problem-solving, and industry best practices.
The debate over AI replacing junior workers has intensified across the tech industry. OpenAI CEO Sam Altman stated in June that AI agents are already functioning like junior-level coworkers, with managers assigning work to AI systems and reviewing their output. Google’s chief scientist Jeff Dean predicted that AI will replicate junior software engineer skills within the next year.
The employment data supports these concerns. Goldman Sachs reports that unemployment for 20- to 30-year-olds in tech has risen nearly 3 percentage points since early 2024—over four times the overall jobless rate increase. Chief economist Jan Hatzius estimates that generative AI will eventually displace 6-7% of all US workers.
However, Garman stressed that adaptability matters more than specialized expertise in an AI-driven economy. He warned against spending years mastering a single skill, noting it won’t remain valuable for 30 years. Instead, he recommended students focus on critical reasoning, creativity, and technological adaptability.
GitHub CEO Thomas Dohmke offered a contrasting perspective, arguing that young engineers bring fresh perspectives and are natural early adopters of AI. “Folks that go to high school now, or to college, or even kids earlier in their education, they get to use AI much faster,” Dohmke said, adding that younger workers approach AI with open minds rather than resistance to change.
Key Quotes
They’re probably the least expensive employees you have. They’re the most leaned into your AI tools. How’s that going to work when you go like 10 years in the future and you have no one that has built up or learned anything?
Matt Garman, Amazon Web Services CEO, explained why replacing junior employees with AI is shortsighted, emphasizing the long-term consequences of eliminating entry-level positions that serve as training grounds for future leaders.
If you spend all of your time learning one specific thing and you’re like, ‘That’s the thing I’m going to be expert at for the next 30 years,’ I can promise you that’s not going to be valuable 30 years from now.
Garman advised students and workers to focus on adaptable skills rather than narrow specialization, recognizing that AI will continuously reshape which technical skills remain relevant in the job market.
You hear people that talk about their job now is to assign work to a bunch of agents, look at the quality, figure out how it fits together, give feedback, and it sounds a lot like how they work with a team of still relatively junior employees.
OpenAI CEO Sam Altman described how AI agents are already functioning like junior-level coworkers, illustrating the practical reality of AI replacing entry-level work in some organizations.
Folks that go to high school now, or to college, or even kids earlier in their education, they get to use AI much faster. They get it because they are taking this with an open mind.
GitHub CEO Thomas Dohmke countered concerns about junior employees, arguing that younger workers’ natural adoption of AI and fresh perspectives make them valuable rather than expendable in an AI-driven workplace.
Our Take
Garman’s position reveals a fundamental tension in AI adoption strategy: the conflict between immediate efficiency gains and long-term organizational health. His warning isn’t just about preserving jobs—it’s about maintaining the knowledge transfer pipeline that creates experienced professionals. The irony is striking: AWS, a company profiting enormously from AI services, is cautioning against over-reliance on the very technology it sells. This suggests even AI providers recognize the limits and risks of wholesale automation. The divergence between Garman’s caution and Altman’s enthusiasm likely reflects different business models—AWS needs customers with sophisticated technical teams, while OpenAI benefits from positioning AI as a workforce replacement. The Goldman Sachs data showing disproportionate youth unemployment in tech is particularly concerning, as it suggests the displacement is already underway. The real question isn’t whether AI can replace junior workers, but whether companies that do so will regret it when they lack experienced talent and institutional knowledge in the coming decade.
Why This Matters
This debate represents a critical inflection point for the tech industry and workforce development. As AI capabilities rapidly advance, companies face a strategic choice: pursue short-term cost savings by replacing junior staff with AI, or invest in developing human talent that can work alongside and manage AI systems. Garman’s warning highlights a potential talent pipeline crisis—if companies stop hiring entry-level workers, they’ll lack experienced professionals in the future who understand both the technical and human aspects of their business.
The rising unemployment among young tech workers, coupled with predictions from leaders at OpenAI and Google, suggests this isn’t a hypothetical concern but an emerging reality. Goldman Sachs’ projection that AI will displace 6-7% of US workers underscores the magnitude of this transformation. The disagreement between executives like Garman and Dohmke versus Altman and Dean reveals fundamental uncertainty about how AI will reshape work. This uncertainty affects educational institutions, job seekers, and businesses making critical hiring decisions. The outcome will determine whether AI becomes a tool that augments human capability or one that eliminates career entry points, potentially creating a hollowed-out workforce lacking mid-career professionals.
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Source: https://www.businessinsider.com/amazon-cloud-chief-replacing-junior-staff-ai-matt-garman-2025-8