AI Disrupts Entry-Level Jobs in Tech Fields, Study Finds

AI is making it harder for entry-level workers in US to find jobs in fields like software development and customer service, according to Stanford University researchers. Over the last three years, employment has dropped 13% for entry-level workers in AI-exposed fields, while remaining stable or improving for more experienced workers. The study suggests that drops in employment are most common for jobs where AI can automate human work.

Artificial intelligence (AI) is transforming the job market, making it increasingly challenging for entry-level workers in fields like software development and customer service to secure employment. A recent study by Stanford University researchers found that over the last three years, employment for new hires in AI-exposed fields has dropped by 13%. This decline is most pronounced for jobs where AI can automate human tasks, while employment trends for more experienced workers have remained stable or improved [1].

The study, coauthored by economist Erik Brynjolfsson and researchers at Stanford's Digital Economy Lab, analyzed data from payroll processor Automatic Data Processing Inc. It found that while employment trends have remained the same or improved for more experienced workers, employment for those aged 22 to 25 has slowed. In contrast, employment trends have strengthened for lower-tech jobs such as nursing aides [1].

The findings are part of a growing body of research examining the impact of AI on the workforce. The launch of OpenAI’s ChatGPT chatbot in November 2022 has fueled this debate, as AI tools have become increasingly sophisticated and widely adopted [1].

Meanwhile, companies like Zoom Video Communications (NASDAQ: ZM) are leveraging AI to drive growth. Zoom's Q3 FY26 financial results showed the highest year-over-year (YoY) revenue growth in 11 quarters, driven by its Enterprise segment and AI tools. The company's stock price rose 4% during early Friday trading, reflecting a positive outlook from investors and analysts [2].

The study's findings underscore the need for policy and educational interventions to help entry-level workers adapt to the evolving job market. As AI continues to reshape industries, it is crucial for policymakers, educators, and employers to work together to ensure that all workers have the skills and opportunities they need to thrive in the digital economy.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-26/ai-makes-it-harder-for-entry-level-coders-to-find-jobs-study-says
[2] https://www.ainvest.com/news/zoom-q3-results-show-strongest-yoy-growth-11-quarters-driven-enterprise-segment-ai-adoption-2508/