Stanford Study: Generative AI Hits Entry-Level Workers Aged 22–25 Hardest

A new study by the Stanford Digital Economy Lab, using ADP payroll data, reveals that generative AI is disproportionately reducing entry-level employment for young workers aged 22–25, particularly in fields like software development and customer service. Meanwhile, employment for senior professionals in these same roles remains stable or has even increased. This research highlights a shift where AI is not replacing entire workforces but is instead blocking the "first rung" of the career ladder for recent graduates. It suggests that entry-level job seekers will face stiffer competition and must acquire higher education or specialized skills to buffer against AI automation. The study found that in occupations highly exposed to AI, employment for 22–25 year olds lagged by 19% compared to less-exposed fields. This vulnerability is attributed to entry-level roles relying heavily on "codified knowledge"—standardized, documented rules that AI can easily replicate—whereas senior roles rely on experience-based "tacit knowledge."