Tech

Artificial Intelligence Replacing Entry-Level Workers, Study Shows 13% Employment Drop

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Artificial intelligence is displacing early-career workers in sectors most exposed to generative AI, according to a new Stanford University study. The research indicates a 13% decline in employment among young workers in affected fields since 2022.

The working paper, authored by Stanford economists Erik Brynjolfsson, Bharat Chandar, and Ruyu Chen, highlights how entry-level employees face the greatest impact compared to older workers and those in less AI-exposed industries. The findings underscore growing concern about the future of younger employees as generative AI tools such as ChatGPT become more prevalent in workplaces.

Brynjolfsson explained that large language models overlap significantly with the academic training of young professionals. “That’s the kind of book learning a lot of people get at universities before they enter the job market,” he told CBS MoneyWatch.

The study identifies software engineering and customer service as the fields most affected. Between late 2022 and July 2025, entry-level employment in these areas dropped by about 20%, while employment for older workers in the same jobs increased. Overall, employment for workers aged 22 to 25 in the most AI-exposed sectors declined 6%, compared to a 6% to 9% rise for older workers.

Other occupations showing similar patterns include accounting, secretarial roles, programming, and sales. Researchers noted that older employees are less affected because they have acquired communication and other soft skills that are harder to automate.

“Older workers have a lot of tacit knowledge because they learn tricks of the trade from experience that may never be written down,” Brynjolfsson said. “They have knowledge that’s not in the LLMs, so they’re not being replaced as much.”

The study also outlines which jobs are most and least exposed to AI. Occupations such as maintenance, repair, nursing, and manual labor appear less vulnerable, while accountants, auditors, software developers, and administrative assistants are at higher risk. The researchers relied on ADP payroll data covering 25 million workers to track these employment shifts.

Despite the job losses, Brynjolfsson emphasized that AI will not only eliminate roles but also create new opportunities. “Tech has always been destroying jobs and creating jobs. There has always been this turnover,” he said.

In some sectors, AI is functioning as an augmentation tool rather than full automation. For example, in healthcare, AI is increasingly used to handle routine tasks, allowing practitioners to focus on patient care. In these cases, no decline in entry-level employment was recorded.

According to the Federal Reserve Bank of St. Louis, 23% of employees reported using generative AI at least once a week by the end of last year. A separate study by staffing firm Burtch Works found that starting salaries for entry-level AI workers rose by 12% between 2024 and 2025, underscoring the growing demand for AI-related skills.

“Young workers who learn how to use AI effectively can be much more productive,” Brynjolfsson said. “But if you are just doing things that AI can already do for you, you won’t have as much value-add.”

The Stanford research provides some of the clearest evidence to date of how generative AI is reshaping employment. Experts suggest continued monitoring is essential as companies further integrate the technology into business operations.