AI Adoption Hits Entry-Level Jobs Hardest, Stanford Study Finds

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A new study from Stanford University is shedding light on how the rapid rise of artificial intelligence—especially since the introduction of tools like ChatGPT in late 2022—is affecting the job market, particularly for young professionals.

According to the paper, titled “Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence,” early-career workers between the ages of 22 and 25 are experiencing noticeable employment declines in sectors most exposed to AI technologies. Fields such as software engineering and customer service, where AI is more likely to automate tasks entirely rather than assist human workers, have seen a 13% drop in employment for this age group since 2022.

In contrast, the broader labor market continues to grow, and job numbers are rising in areas where AI is used to support—rather than replace—human activity. Employment for older workers is also increasing, suggesting that AI’s impact is highly uneven across age groups and industries.

The Stanford researchers outline a few key findings: the employment decline is concentrated in AI-exposed sectors while the general economy continues to grow, these changes persist even when controlling for company-specific factors, and the shifts are more pronounced in job availability than in wages. Importantly, these trends hold regardless of whether jobs are remote or on-site, suggesting that AI—not post-pandemic work patterns—is driving the shift.

The study positions young workers as an early warning sign of AI’s disruptive potential, likening them to “canaries in the coal mine” for broader labor market effects.

However some analysts are increasingly asking whether the current wave of AI enthusiasm will soon fade, similar to other tech booms of the past.

For now, the focus remains on how AI is shaping employment, particularly for younger workers entering the job market at a time when key tasks are increasingly handled by machines.