This is the big question. It could be any combination of the following and it likely depends on the company/position too:

- Generative AI is genuinely capable enough to replace entry level workers at a lower cost.

- The hype around Generative AI is convincing people who make hiring decisions that it is capable enough to replace entry level workers at a lower cost.

- The hype around Generative AI is being used as an excuse to not hire during an economic downturn.

Could even still be other things too.