A groundbreaking study from Stanford University has revealed that artificial intelligence is already changing the job market in significant ways across the United States. Led by top economist Erik Brynjolfsson, the research used payroll data from millions of American workers to understand how AI affects different groups.

The study found that young workers are being hit the hardest by AI adoption. Workers between ages 22 and 25 have seen a 13% drop in employment in jobs that are most exposed to AI technology. This happened between late 2022, when tools like ChatGPT became popular, and July 2025. At the same time, older workers in the same types of jobs have kept their positions or even found more work.

Software engineering and customer service have been the most affected industries. Young software developers have lost about 20% of their jobs compared to late 2022. Customer service workers of the same age group have seen similar drops. However, workers over 30 in these same fields have experienced job growth of 6% to 13%. This shows that experience and specialized knowledge are protecting older workers from being replaced by AI.

The reason for this difference comes down to what type of knowledge AI can replace. AI tools are trained on books, articles, and internet content. This means they can do many tasks that recent college graduates typically handle, like basic coding or answering customer questions. However, AI struggles with complex, experience-based knowledge that older workers have developed over years.

A separate issue affecting businesses is AI shame in the workplace. Nearly half of all employees (48.8%) admit to hiding their use of AI tools at work because they worry about being judged. This creates a problem for companies because workers are using AI in secret instead of getting proper training. About 23% of workers use AI tools at least once per week for their jobs, but many companies have not created clear policies about AI use.

The corporate training gap is creating additional stress for workers. More than half of professionals say AI training feels like a second job. They report feeling overwhelmed by training programs that add stress and longer hours without clear benefits. This suggests that companies need better strategies for teaching workers how to use AI effectively.

Surprisingly, some of the oldest workers are embracing AI more successfully than expected. Workers in their 80s and 90s are learning AI tools and using them to improve their work. For example, some older consultants are using AI to help their clients and even teaching others how to use these technologies. However, hiring managers are much less likely to consider older workers for AI-related positions.

The research shows that AI affects jobs in two main ways. It can automate tasks that humans normally do, which leads to job losses. Or it can augment human work, helping people do their jobs faster and better. The key difference is how companies choose to implement AI technology.

In fields like nursing, AI is more likely to help workers rather than replace them. These tools can handle routine tasks, giving healthcare workers more time to focus on patient care. This shows that the impact of AI depends heavily on how businesses choose to use the technology.

For business leaders, these findings suggest several important strategies. Companies need to be transparent about their AI plans and help workers understand how the technology will be used. They should focus on training programs that teach workers how to use AI as a tool rather than fear it as a replacement. Additionally, businesses may need to rethink their hiring practices to ensure they are not unfairly discriminating against any age group.

The unemployment rate in the United States has risen to 4.2%, and AI-exposed occupations are showing higher unemployment increases. This trend is particularly concerning for businesses that rely on entry-level talent, as they may need to adjust their recruitment and training strategies to account for these changes.

Looking ahead, businesses will need to balance the efficiency gains from AI with the need to maintain a skilled workforce. The transition period is creating both challenges and opportunities. Companies that can successfully train their workers to use AI as an augmentation tool rather than a replacement may gain competitive advantages in productivity and innovation.