Young professionals in the United States are bearing the initial brunt of workplace AI adoption, with entry-level employment in tech and customer service roles declining sharply since late 2022, according to new Stanford University research tracking workforce trends through July 2025.
The study analyzed payroll data from millions of workers, revealing a 13% employment decline for workers aged 22-25 in AI-exposed occupations. Software developers in this age group saw nearly 20% fewer job opportunities compared to pre-AI adoption levels, while older colleagues maintained stable employment.
"These patterns suggest generative AI tools like ChatGPT are reshaping hiring practices," said lead researcher Erik Brynjolfsson. The findings show companies are cutting entry-level positions rather than reducing wages, particularly in roles where AI can automate codified knowledge typically taught in academic settings.
Healthcare and hands-on service roles bucked the trend, showing continued growth for young workers. Researchers attribute this to the difficulty of automating tacit knowledge gained through practical experience.
With 46% of U.S. workers reportedly using AI tools by mid-2025, the study highlights growing divides in workforce preparedness. While the current data focuses on American labor markets, the findings carry implications for global workforce strategies as AI adoption accelerates worldwide.
