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According to a study, employers may be creating fewer entry-level opportunities in roles where AI can handle routine or knowledge-based tasks.
The findings suggest that companies may be changing their workforce plans as AI becomes more capable. (AI Generated Image)
Companies appear to be hiring fewer young workers for jobs that are highly exposed to artificial intelligence (AI), according to a new Stanford study. The findings highlight a growing challenge for young workers: AI may make it harder to get the first few years of work experience that traditionally help employees build their careers.
The study, titled “Canaries in the Coal Mine? Six Facts About the Recent Employment Effects of Artificial Intelligence,” was conducted by Stanford researchers Erik Brynjolfsson, Bharat Chandar and Ruyu Chen. The researchers analysed payroll data from ADP covering millions of US workers through June 2026.
The study found that employment among workers aged 22 to 25 in AI-exposed occupations was 19% lower than it would have been if their employment had grown at the same rate as that of workers in less AI-exposed occupations.
However, experienced workers have not seen a similar decline. This suggests that younger workers may be facing greater difficulty entering occupations where AI can perform some of the tasks traditionally assigned to entry-level employees.
The researchers found that employment declines were strongest in jobs where AI is mainly used to replace or automate human tasks. In occupations where AI works alongside employees and helps them perform their jobs, employment remained stable or increased, particularly among experienced workers.
The findings suggest that companies may be changing their workforce plans as AI becomes more capable. Rather than removing large numbers of existing young employees, employers may be creating fewer entry-level opportunities in roles where AI can handle routine or knowledge-based tasks.
The study also found that young workers in occupations based heavily on codified knowledge are seeing greater employment declines. These jobs rely on information that is formally documented and can be taught through textbooks, training materials and written procedures.
In contrast, employment has increased among experienced workers in jobs that require tacit knowledge, which is developed through practical experience, mentoring and repeated exposure to real-world situations.
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August 27, 2026, 1:35 PM IST
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