A recent study by Stanford University researchers has uncovered compelling evidence that artificial intelligence (AI) is already reshaping the workforce, with the most significant impact seen in entry-level positions.
Erik Brynjolfsson, a professor at Stanford and lead author of the study, explained to Wired that while anecdotal evidence and company-specific reports often provide fragmented insights, their research aimed to take a more systematic approach to understand the broader effects of AI. The team analysed comprehensive salary data from ADP, the United States’ largest payroll processor, spanning from late 2022 to mid-2025. The findings are striking: job hiring for individuals aged 22 to 25 in AI-sensitive sectors, including customer service and software development, decreased by 13% during the period studied.
The Changing Nature of Work: Routine Tasks Are First to Go
While younger workers face the brunt of AI’s disruption, the study suggests that more experienced employees are less affected by the rise of automation. For seasoned professionals, job stability remains intact, and in some cases, hiring for their roles even increased slightly. Brynjolfsson argues that AI’s influence is more closely tied to the level of experience rather than the nature of the work itself. Routine, repetitive tasks—such as writing code for API connections—are particularly vulnerable to automation.
The study carefully accounted for external factors such as the COVID-19 pandemic, the shift to remote work, and the wave of layoffs within the tech industry. However, even when these variables were factored in, AI’s role in eliminating jobs remained evident. Interestingly, the research also found no significant impact on wages, despite the reduction in job opportunities for younger, less experienced workers.
The Path Forward: Human-Machine Collaboration and Policy Reform
Looking ahead, Brynjolfsson advocates for a shift in how companies approach AI implementation. Instead of relying on pure automation, he suggests businesses focus on human-machine collaboration to maximise productivity without compromising workforce participation. This, he argues, will help mitigate the social and economic consequences of widespread job displacement.
Moreover, Brynjolfsson is calling for reform in the tax system, proposing that companies should not receive tax incentives when replacing human workers with machines. “If the goal is to ensure a fair distribution of the benefits of AI, the tax code should incentivize investments in human capital rather than rewarding automation,” he noted.
As AI continues to transform industries, it is clear that the landscape of work will evolve—creating new opportunities for some while displacing others. The challenge for policymakers, businesses, and workers alike will be navigating this transition in a way that ensures a balanced and sustainable future.