Recent research from Stanford University economists reveals a troubling shift in the U.S. job market, where generative AI tools like ChatGPT are reshaping employment patterns, particularly for those just starting their careers.
According to Breitbart: A study published by Stanford researchers shows that AI is limiting employment prospects for some young American workers, especially in fields where AI can automate tasks such as software development and customer service.
The study, which draws on anonymized data from millions of workers across thousands of companies, points to a clear drop in hiring and retention for younger employees in roles vulnerable to AI automation.
Fields such as software development, customer service, translation, and reception work stand out as the hardest hit. Since ChatGPT’s launch in late 2022, employment in these areas has weakened, with the impact landing squarely on workers aged 22 to 25. For software developers in that age group, numbers have fallen by nearly 20 percent from their peak in late 2022 through July 2025. Older workers in the same fields, however, have seen steady or growing headcounts, underscoring a generational divide.
Erik Brynjolfsson, a Stanford economist and co-author of the study, highlighted the disparity: “There’s a clear, evident change when you specifically look at young workers who are highly exposed to AI.” The researchers controlled for other economic factors, including interest rate hikes by the Federal Reserve and lingering effects from the pandemic, yet the data still shows AI as a distinct driver of these changes.
Overall, entry-level positions in AI-exposed occupations have seen a 13 percent relative decline for early-career workers since generative AI became widely available. This trend aligns with broader reports of companies leaning on AI to handle tasks once assigned to juniors, from coding basic programs to managing initial customer inquiries. In customer service, for instance, AI chatbots and automated systems are increasingly replacing human roles, leaving fewer openings for newcomers.
Not all AI applications spell doom, though. The study notes a positive flip side in sectors where AI acts as a tool to enhance human efforts rather than replace them. In healthcare and certain knowledge-intensive jobs, young workers have actually benefited from faster employment growth than the market average.
Brynjolfsson expressed optimism about this path: “I was delighted to see in the data that indeed, this augmentation approach could benefit people and lead to more employment.”
This pattern echoes findings from other analyses. Data from the Burning Glass Institute shows a drop in the share of recent college graduates entering the workforce, affecting majors from engineering to the arts.
Unemployment rates for these grads are climbing faster than for those without degrees. Employers in industries like finance, insurance, and technical services are expanding but prioritizing experienced hires over rookies, often citing AI’s efficiency for routine work.
At firms like Chicago-based Hirewell, clients in marketing have shifted away from entry-level hires, turning to AI instead. Bill Balderaz, CEO of consulting firm Futurety, skipped hiring a summer intern this year, opting for AI to manage social media tasks. He remarked, “Having a good job ‘guaranteed’ after college — I don’t think that’s an absolute truth today any more.”
Matt Sigelman, president of Burning Glass, called it a “tectonic shift,” with companies more inclined to cut junior staff and bolster mid-level roles.
The rapid evolution of AI capabilities adds urgency to these concerns. Performance on benchmarks like SWE-Bench, which tests AI in software engineering, jumped from 4.4 percent in 2023 to 71.7 percent in 2024, signaling how quickly machines are closing the gap on human tasks. As adoption grows—46 percent of U.S. adults reported using large language models at work by mid-2025—these disruptions could widen, pressuring policymakers to address workforce training and protections for American labor.
While AI promises efficiency gains for businesses, its uneven rollout risks sidelining a generation of workers before they even gain a foothold. The Stanford findings serve as an early warning, urging a closer look at how technology reshapes opportunity in the economy.
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Author: Breitbart
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