Khosla’s Ethan Choi Warns AI Could Replace Entry-Level Jobs

Artificial intelligence is transforming how companies work — and according to investor Ethan Choi, the impact could be especially tough for people just starting their careers.

Choi, a partner at Khosla Ventures, has been outspoken about the rapid rise of AI and how it may reshape the modern workforce. His biggest concern: many of the entry-level roles that once helped young professionals learn the ropes could disappear.

The investor has a front-row seat to this shift. Over the past few years, he has led or participated in investments in a range of fast-growing startups, including companies like Ramp, ClickHouse, Vercel, Glean and Bridge. Many of these businesses are built with AI at their core.

AI as a “superpower” for professionals

Choi says AI has already transformed the way he works. Tools powered by large language models help him quickly understand complex technical topics — sometimes even while he’s driving.

For example, he can ask an AI system to explain the differences between the indexing methods used by ClickHouse and Snowflake. The system instantly pulls information from research papers and documentation, delivering answers far faster than a person could.

The experience, he says, feels like putting on an “Iron Man suit” for knowledge work.

But there’s a downside. If AI can help a senior professional perform tasks that were once handled by junior employees, companies may hire fewer entry-level workers.

The challenge for students and universities

That shift could force major changes in education. Choi believes universities may need to rethink how they prepare students for the workforce.

In the past, new graduates often learned professional skills during their first few years on the job. But if entry-level roles shrink, that training period might disappear.

Instead, Choi argues, universities should focus on helping students use AI to build real-world projects and practical skills. By the time a computer science graduate enters the workforce, he says, they may need to perform at the level of a third- or fourth-year engineer.

Some schools are already experimenting with this approach. Institutions like Vanderbilt University and Arizona State University are starting to explore AI-first academic programs, though many elite universities are still figuring out how to adapt.

Betting on founders, not just metrics

Choi joined Khosla Ventures in 2024 after years as a partner at Accel. At Accel, he led investments in companies such as 1Password, Klaviyo, Pismo and commercetools.

Earlier in his career, he worked at Spectrum Equity, investing in companies like Headspace and Lucid Software.

Over time, Choi says his investing strategy has evolved. Instead of focusing mostly on company metrics, he now prioritizes founders.

In today’s fast-moving AI era, numbers can change quickly. What matters most, he says, is whether a founding team can adapt and lead through constant disruption.

The AI shake-up in software

Choi also expects major upheaval across the software industry. Companies that fail to adapt to AI could struggle to survive.

He believes the market is shifting away from valuing companies purely on revenue growth and toward profitability metrics such as free cash flow.

Startups that embrace AI-native business models — especially those built around usage-based pricing — may have the advantage. Others relying on older subscription models could face intense pressure.

Some founders are already trying to reinvent their businesses from the ground up. According to Choi, that kind of bold move may soon be essential.

In a world where AI accelerates innovation at unprecedented speed, companies — and workers — may have only two choices: evolve quickly or risk being left behind.

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