Editor's note: This piece was authored by Ryan Khurana.

AI is finally showing up in the labor data, but in an unexpected way. 

Stanford researchers studying U.S. payroll records found a growing divide between young workers based on their exposure to AI. Since ChatGPT’s release in November 2022, employment among 22- to 25-year-olds in highly AI-exposed occupations has fallen 19 percent relative to less-exposed occupations. 

Young workers in AI-exposed fields like software development, customer service, and accounting are competing for fewer roles than their unexposed peers in nursing, construction, and food services. However, the same AI-exposed occupations have seen no comparable decline in new roles for experienced workers. Layoffs also remain stable.

The clearest AI-associated labor market effect has simply been fewer job opportunities for young Americans.

My own experience with enterprise AI adoption reflects this data. AI demand has focused on automating “intern-level” tasks: the routine, low-stakes, time-consuming work that gets young workers onto the job ladder. Existing workers do more entry level work with AI and new positions do not get created.

These current applications of AI fail to utilize the technology’s potential, which should help create more opportunities for young........

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