Challenging Landscape for Emerging Coders
The current climate presents substantial challenges for nascent coders.
Recent studies from Stanford University illuminate the profound implications of artificial intelligence (AI) on various employment sectors. Researchers Erik Brynjolfsson, Bharat Chandar, and Ruyu Chen articulate that while “our documented facts may partly stem from factors beyond generative AI, our findings align with the supposition that generative AI has started to influence entry-level jobs,” as detailed in their latest paper released on Tuesday.
Individuals in the early stages of their careers—identified as those aged 22 to 25—working in professions most susceptible to AI, experienced a 13% relative downturn in employment post-analysis of industry-wide or company-wide variables, such as fluctuations in interest rates.
Software engineers and customer service representatives were specifically highlighted as among the most vulnerable to AI disruption.
Both categories showed a pronounced decrease in employment for the youngest workforce cohort after 2022, contrasting with employment growth recorded in older age brackets.
By July 2025, employment levels for developers aged 22 to 25 had plummeted nearly 20% from their zenith in late 2022, the researchers reported.
Conversely, employment figures remained either stable or on the rise for more seasoned workers within the same roles, as well as for those in sectors less entwined with AI technology.
The authors noted these troubling trends becoming most apparent from late 2022 onwards. Significantly, this period coincided with the notable debut of OpenAI’s ChatGPT in November 2022, along with a proliferation of subsequent AI chatbots.
Nevertheless, the ramifications of AI are not solely detrimental for the workforce. The findings also indicated employment growth in positions where AI serves to enhance, rather than replace, human contributions.
Utilizing data from ADP, the preeminent payroll processing entity in the United States, the authors highlighted that their analysis was based on records pertaining to 3.5 to 5 million employees per month.
Additional Context
Many technology firms are experiencing a deceleration in hiring following the pandemic-induced surge.
A July report from the Indeed Hiring Lab indicated that opportunities in the tech sector have notably dwindled since mid-2023 after peaking in early 2022.
The report posited that “the automation of certain tasks inherent in these roles could contribute significantly to the decline in job postings.”
Moreover, external factors such as “less favorable economic conditions” arising from a zero-interest-rate policy (ZIRP) post-pandemic also play a considerable role.
In a separate analysis conducted by the Burning Glass Institute, it surfaced that the unemployment rate for Gen Z and younger millennials engaged in computer and mathematical occupations has escalated beyond pre-pandemic levels recorded in 2018 and 2019.
Tech leaders have hinted, and in some instances, explicitly stated, that AI presents a potential threat to talent within their industries.
Meta CEO Mark Zuckerberg remarked in January that his organization and others will likely introduce “an AI that can effectively function as a sort of mid-level engineer within the company.”
Similarly, Klarna CEO Sebastian Siemiatkowski announced halting all hiring in 2023, asserting that “AI can already perform the entirety of the jobs we, as humans, execute.”
Additionally, Shopify CEO Tobi Lütke informed his managerial team earlier this year that any requests for new hiring would necessitate convincing evidence that AI could not perform the requisite tasks more efficiently.
Duolingo CEO Luis von Ahn echoed this sentiment in an April memorandum, asserting that the company would “gradually cease employing contractors for tasks that AI can adeptly handle.”
Source link: Businessinsider.com.
