Is AI Affecting Employment?

Sep 2, 2025

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On today’s show we are taking a look at a paper published in the past week by Stanford University.

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On today’s show we are taking a look at a paper published in the past week by Stanford University.

There is a lot of news coverage about how AI is changing the world of software development. This is seen as a bellwether for what is to come elsewhere in the economy. Software is ideal for tools like AI in that it is a much more restricted language than natural language with a much smaller vocabulary. It’s at the intersection of math and language, so it’s much easier for a large language model to work on.

The Stanford paper was widely quoted in the media and it tells us a few things about the state of AI and how it is affecting hiring.

The first, and perhaps most striking fact is the substantial and measurable decline in employment for workers aged 22-25 in occupations deemed most exposed to generative AI. This group has experienced a 13% relative decline in employment since late 2022, a period that coincides with the widespread adoption of tools like ChatGPT.

For the most AI-exposed occupations, young workers experienced a 6% decline, while older workers saw an increase of 6-9%. This tells us that junior positions are being displaced, but the most experienced workers are using AI to augment their work and multiply their productivity.

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