AI eliminated 13% of junior-level jobs in Tech, Finance, and Support roles over three years, Stanford study finds

Young professionals have lost more than a tenth of their job opportunities over the past three years due to the rise of artificial intelligence, with junior positions being the hardest hit — while mid- and senior-level roles have actually seen gains.

A new study by Stanford University reveals that AI is making it significantly more difficult for early-career workers to land jobs in software development, customer support, finance, and administrative roles, according to Bloomberg. Employment among junior workers in these fields has dropped by 13% since AI adoption began accelerating.

The research — conducted by Stanford's Digital Economy Lab and economist Erik Brynjolfsson — found that workers aged 22 to 25 have been most affected. The study analyzed payroll data from Automatic Data Processing (ADP), drawing on information from thousands of U.S. companies employing millions of workers.

In contrast, employment trends for more experienced professionals in the same industries remained stable or even improved — even in sectors where entry-level positions saw the biggest decline. The researchers suggest this may be due to AI-enhanced productivity among senior employees, or a reassignment of responsibilities from eliminated junior roles, as seen at some major companies like Australia's largest bank. Meanwhile, employment among inexperienced youth has risen in low-tech sectors.

While a recent MIT study showed that most companies using AI haven't yet seen major profitability gains, many have still moved forward with AI adoption at the expense of junior jobs. As noted by Tom’s Hardware, in certain industries, this could stifle the development of early-career talent and "bleed the pipeline" of future professionals.

There are two main approaches to integrating AI: cut jobs deemed "redundant," or use AI to boost productivity without reducing the workforce. But if AI helps high-performing workers do even more — while eliminating the junior roles that once helped them gain experience — where will the next generation of developers, accountants, and admin assistants come from?