Bill McDermott, CEO of ServiceNow (NOW), has warned that new college graduates could face unemployment in the mid-30s as AI agents take over their entry-level work. This could be a six-fold increase from current levels of unemployment. The Federal Reserve Bank of New York put the unemployment rate for recent college graduates at about 5.7% and the underemployment rate at 42.5%. This shift is particularly challenging for new grads as these roles are traditionally used to teach them how to work. McDermott's warning comes as companies are already moving fast to integrate AI, with Block cutting roughly 40% of its workforce in February and Atlassian cutting 1,600 employees to fund AI investment and enterprise sales.