Entry-level workers in the U.S. are getting an early wake-up call: artificial intelligence is reshaping the job market. A Stanford study by economists Erik Brynjolfsson, Bharat Chandar and Ruyu Chen, based on ADP payroll data covering millions of workers through July 2025, reveals a 13% employment slump among 22-25-year-olds in AI-exposed roles since late 2022.
Generative AI tools like ChatGPT, which soared in adoption after its November 2022 launch, have hit young software developers and customer service reps the hardest. Employment for developers aged 22-25 plunged nearly 20% from its peak, while older colleagues saw stable or growing numbers.
The research tracked monthly payroll trends across tens of thousands of companies, linking job classifications to AI exposure metrics. Roles where AI automates routine tasks saw the steepest declines, whereas positions where AI augments human skills, such as health aides and nursing assistants, continued to grow among young workers.
By mid-2025, about 46% of U.S. employees reported using large language models at work. The study’s authors say firms primarily adjusted headcounts instead of cutting wages when adopting AI.
For young professionals and entrepreneurs, this trend is a signal: the jobs landscape is shifting. AI can take on codified tasks learned in classrooms but struggles with the tacit knowledge gained on the job. That means roles emphasizing creativity, emotional intelligence and hands-on experience may offer more resilience.
As AI adoption accelerates, students, global citizens and digital nomads eyeing gigs abroad will need to future-proof their skills. Embracing lifelong learning, focusing on uniquely human strengths and staying agile could make the difference in a market where algorithms are part of the team.
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Young workers face AI replacement in U.S. workplaces, study finds
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