Study Reveals AI Adoption Linked To 13% Decline In Entry-Level Jobs

Three Stanford University researchers published a study on Tuesday revealing that generative AI adoption is linked to a 13% decline in entry level jobs. The study presents evidence of how the technology is impacting young workers in the United States.

According to the study, early-career workers aged 22 to 25 have seen fewer job opportunities in areas where AI can automate tasks. The researchers noted that certain occupations such as customer service representatives and software developers have been significantly affected. In contrast, the demand for experienced workers in the same field remains the same or shows signs of growth.

“Overall employment continues to grow robustly, but employment growth for young workers in particular has been stagnant since late 2022,” states the document.

The researchers analyzed the job market and provided several explanations for why and how entry-level jobs are being impacted by AI. They noted a distinction between jobs where AI can automate tasks and replace workers versus jobs where AI can augment productivity and complement existing tasks.

“Not all uses of AI are associated with declines in employment,” states the document. “While we find employment declines for young workers in occupations where AI primarily automates work, we find employment growth in occupations in which AI use is most augmentative.”

The team also used queries in AI models such as Claude to evaluate the specific tasks and requirements of different jobs, analyzing how those tasks might be automated or enhanced by AI.

The study highlights that while multiple factors can influence job market trends—including the COVID-19 pandemic—the impact of AI has been noticeable since 2022.

According to CNBC, the study hasn’t been peer-reviewed yet but provides compelling evidence of AI’s current impact on the job market.

Other recent research has also examined AI’s effect on employment. A few days ago, a study revealed that 10,000 jobs were lost in July in the U.S. due to the adoption of advanced technology, the highest number since 2020. A United Nations report shared in April states that 40% of the jobs across the world will be affected by generative AI.