Artificial intelligence, or AI, is increasingly undercutting job opportunities for younger, less-experienced workers in roles such as software development and customer support, a new study out of Stanford University reveals.
Employment among workers aged 22 to 25 in these AI-impacted fields has dropped by 13 percent since late 2022, according to data drawn from records from Automatic Data Processing (ADP), the largest payroll processing firm in the United States.
This significant drop underscores the challenges faced by new graduates entering the tech industry.
In contrast, as per the Stanford study, older and more seasoned professionals haven’t seen a comparable decline in employment within the same sectors.
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Employment trends also strengthened for lower-tech jobs, such as nursing aides.
In fact, AI is reportedly creating more opportunities for experienced workers while making it harder for newcomers to gain a foothold, deepening workforce disparities.
Furthermore, the impact extends beyond tech.
There is growing concern that AI will erode entry-level positions across various white-collar sectors, including customer service, law, and consulting, potentially transforming the job market in fundamental ways.
The Stanford study, coauthored by economist Erik Brynjolfsson and researchers at Stanford’s Digital Economy Lab, adds to a growing body of research examining how the rapid rise of artificial intelligence is reshaping the job market.