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 Wall Street Journal reports that a new study by three Stanford University economists demonstrates that the impact of generative AI tools, such as ChatGPT, is being sharply felt in fields where automation is most feasible. The research, which analyzed anonymized employment data from millions of workers at tens of thousands of companies, found that young employees in high-exposure roles are facing significant challenges in securing and maintaining employment.
The study zeroes in on occupations where AI can most readily automate tasks, including software development, customer service, translation, and reception work. Since the introduction of ChatGPT in late 2022, employment in these categories has softened, with the brunt of the decline falling on younger workers. For instance, the number of software developers aged 22 to 25 dropped by nearly 20 percent as of July 2025 compared to its peak in late 2022. In contrast, employment among workers aged 26 to 30 remained relatively flat, while older workers continued to see headcount growth in the same fields.
Stanford economist Erik Brynjolfsson, one of the study’s authors, noted, “There’s a clear, evident change when you specifically look at young workers who are highly exposed to AI.” The research suggests that the decline cannot be solely attributed to broader economic trends, such as the Federal Reserve’s interest rate hikes or pandemic-related disruptions. Even after accounting for these factors, the data reveals a distinct AI-driven shift in the labor market.
Interestingly, the study also identifies a contrasting trend in sectors where AI serves as an assistant rather than a replacement. In occupations where AI augments human productivity, such as certain roles in healthcare and other knowledge-based fields, young workers have experienced employment growth that outpaces the overall job market. Brynjolfsson emphasized the value of this augmentation approach, stating, “I was delighted to see in the data that indeed, this augmentation approach could benefit people and lead to more employment.”
The Stanford research has backed up other evidence that AI’s greatest impact is on entry-level workers. Breitbart News previously reported on this trend:
According to data from the Burning Glass Institute, the share of graduates in the labor force with a bachelor’s degree one year after graduation has dropped, deviating from historical patterns. The decline is not limited to a specific field — majors ranging from visual arts to engineering are feeling the pinch. Unemployment among recent college graduates is rising faster than for those with only a high school diploma or associate’s degree.
Employers are openly acknowledging the shift. At Chicago-based Hirewell, marketing clients have largely stopped requesting entry-level staff, opting instead for AI solutions. “Having a good job ‘guaranteed’ after college — I don’t think that’s an absolute truth today any more,” said Bill Balderaz, CEO of consulting firm Futurety, who chose not to hire a summer intern this year, preferring to use AI for social media tasks.
The impact is especially pronounced in sectors like information, finance, insurance, and technical services. These industries are still growing, but they’re hiring fewer inexperienced workers, focusing instead on seasoned professionals. Matt Sigelman, president of Burning Glass, described this as a “tectonic shift,” with employers more likely to let go of entry-level workers and increase hiring of experienced staff.
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
