Stanford study links generative AI to 16% drop in early-career hiring
a stanford digital economy lab working paper found that workers aged 22 to 25 in high-ai-exposure jobs experienced a 16% relative decline in employment following the spread of generative ai.
stanford research highlights a specific disruption to the career ladder, finding a 16% relative employment drop for workers aged 22 to 25 in ai-heavy sectors like software and customer service. the data indicates firms are leveraging generative ai to automate junior-level tasks that traditionally provided training and experience. this trend occurs alongside a broader softening market for recent graduates, with new york fed data showing rising underemployment. experts warn this substitution threatens to create a long-term experience gap and stall professional development.