Research from Stanford University has reported a 13% drop in employment rates for entry-level candidates over the past three years, thanks to the development of AI within the workforce.
The picture looks the most bleak for entry-level candidates joining fields that are easily replaced by AI, such as software development and customer service, whereas older workers outside of these fields are not seeing similar patterns.
Crucially, the way that a company approaches deploying AI also makes a big impact. Instead of integrating AI to keep up with the trend, businesses should have a clear understanding of how AI can help its employees, rather than replace them altogether.
AI Threatens Entry-Level Jobseekers In New Study
A new study from researchers at Stanford University has found that AI is gnawing away at job prospects for entry-level candidates. The research analyzed payroll data from management services company Automatic Data Processing Inc.
It concluded that employment for younger workers, aged 22-25, in AI-impacted jobs such as software development and customer support, has dropped by 13% in the past three years.
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Older workers, or those in fields outside of AI’s domain, aren’t seeing as much of a measurable hit to future job prospects. The researchers suggested that this is because AI has more book knowledge, rather than hands-on experience, like the typical entry-level candidate.
Certain Entry-Level Roles More Impacted Than Others
The researchers noted that it was only when they narrowed down their search to specific industries and roles that the impact AI became clear.
On top of junior roles in software development and customer service, roles in accounting, development, and administration had fallen also.
On the other hand, roles such as nursing technicians had seen an increase in employment over the same period of time. This suggests that the entry-level candidates joining fields that could see AI take over are most at risk.
How Companies Deploy AI Is Vital
This isn’t the first study to suggest that prospects for entry-level candidates are bleaker following the rapid deployment of AI. However, the Stanford researchers found that a company’s attitude towards AI implementation was a key factor in determining the number of opportunities available to candidates.
While businesses who view AI as a replacement for human workers are hiring less, those looking to use the technology to augment their human workforce are hiring more.
There is certainly evidence of companies taking a heavy-handed approach to AI — Coinbase CEO Brian Armstrong recently admitted to firing engineers who didn’t take on AI. However, an attitude that allows workers to use the technology to help them with their daily tasks, rather than replace them altogether, is surely the best way forward.
