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AI Is a Threat to the Entry-Level Job Market, Stanford Study Shows

Early-career workers in roles most exposed to AI, such as software development and customer support, have experienced big declines in employment.

Headshot of Dashia Milden
Headshot of Dashia Milden
Dashia Milden Editor
Dashia is the consumer insights editor for CNET. She specializes in data-driven analysis and news at the intersection of tech, personal finance and consumer sentiment. Dashia investigates economic shifts and everyday challenges to help readers make well-informed decisions, and she covers a range of topics, including technology, security, energy and money. Dashia graduated from the University of South Carolina with a bachelor's degree in journalism. She loves baking, teaching spinning and spending time with her family.
Dashia Milden
2 min read
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Stanford's study shows that older workers and those in more experienced roles are still thriving despite the evolution of AI. 

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Will artificial intelligence take your job? A recent Stanford study provides six facts supporting "the hypothesis that the AI revolution is beginning to have a significant and disproportionate impact on entry-level workers in the American labor market." 

The study noted that "since the widespread adoption of generative AI, early-career workers (ages 22-25) in the most AI-exposed occupations have experienced a 13% relative decline in employment." 

Read more: Don't Make the Job Hunt Harder. 9 Strategies to Stay Sane and Get Hired

Easily automated jobs are most affected

The decline in employment can be seen primarily in occupations where AI automates the work rather than when it augments people's labor. The study found "substantial declines in employment" for those in their early 20s working in fields most exposed to AI, including customer service and software development.

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By contrast, employment for more experienced workers in those fields and those working in less AI-exposed fields like nursing "has remained stable or continued to grow," the study said. 

The research showed that job declines remained even when such considering such industry shocks as interest-rate changes. The adjustments are more visible in employment than compensation, meaning AI might affect employment more than wages, at least for now. The patterns also hold in jobs that aren't affected by remote work and for both fields with a high share of college graduates and those without.

According to the Bureau of Labor Statistics, overall unemployment remains relatively stable. July's rate was 4.2%, slightly up from 4% in May and 4.1% in June.

Read more: How to Write a Cover Letter Using AI