The researchers emphasise that the disruption is happening through fewer job opportunities rather than falling pay. — Photo by Denise Jans on Unsplash
A new, first-of-its-kind Stanford University study offers some of the strongest evidence yet that artificial intelligence is reshaping the US job market – and it's hitting Generation Z the hardest.
The report, "Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence," published Tuesday, draws on millions of anonymised payroll records from ADP, the nation's largest payroll processor, spanning late 2022 – when generative AI tools like ChatGPT surged – through mid-2025.
It found that employment for workers ages 22 to 25 in the most AI-exposed jobs, including software development and customer service, has dropped by 13% relative to less-exposed roles.
By contrast, older employees in those same occupations have seen employment remain steady or even grow.
The study highlights a clear divide.
"Employment has begun to decline for young workers in highly exposed occupations like coding and call centres, but older workers and workers who use AI to augment, not automate work, have seen job gains," Erik Brynjolfsson, a Stanford economist who led the research, wrote on social media.
The researchers emphasise that the disruption is happening through fewer job opportunities rather than falling pay.
"We find little difference in annual salary trends by age or exposure quintile, suggesting possible wage stickiness," the study says.
The authors stress the findings are not explained by pandemic aftershocks, economic headwinds or remote work trends. Instead, they line up closely with the timing of widespread AI adoption.
"Overall, we do not want to claim that AI explains all of the patterns we show in the data, but our results are consistent with the notion that AI is having a tangible impact on the labour market for entry-level workers," co-author Bharat Chandar wrote on social media. – San Francisco Chronicle/Tribune News Service
