AI Is Eliminating Jobs for Younger Workers (www.wired.com)

A new study from Stanford University provides compelling evidence that generative AI, particularly since ChatGPT’s debut in late 2022, is beginning to displace jobs—most notably among younger workers aged 22 to 25—in sectors vulnerable to automation like customer service and software development. The researchers analyzed payroll data from ADP and found a 16 percent decline in employment for this demographic, revealing that AI’s impact is influenced more by a worker’s experience than by job type. While younger, less experienced employees face job losses, more seasoned professionals in AI-affected industries have seen employment opportunities hold steady or even grow slightly. This nuanced picture challenges broad assumptions about AI-driven unemployment, demonstrating that AI is reshaping rather than universally eliminating work. Routine, repetitive tasks such as basic coding or standard customer interactions are increasingly automated, but wages have not yet declined, and jobs requiring nuanced expertise or human oversight remain intact. The study also controlled for confounding factors like the pandemic, remote work trends, and tech layoffs, affirming that AI itself is a distinct job market disruptor. Stanford professor Erik Brynjolfsson highlights the need for policy adaptations, including tax reforms that discourage unchecked automation and development of AI systems emphasizing human-machine collaboration. The research team advocates for “centaur” AI benchmarks to measure and incentivize augmentation rather than replacement, underscoring a future labor market where managing AI-augmented workflows becomes critical. However, Brynjolfsson warns that without careful tracking and intervention, AI’s disruptive effects could extend beyond younger workers, making real-time monitoring essential.