The Impact of AI on Employment Trends in Remote Work

A recent study from Stanford University, analyzing payroll data from millions of U.S. workers, reveals that AI tools such as ChatGPT have led to a sharp decline in jobs for young professionals in fields highly exposed to automation. Since late 2022, employment for workers aged 22 to 25 in these roles has dropped by a relative 13 percent. In contrast, experienced workers and those in less AI-impacted sectors have seen stable or even increased employment.

Key Findings from the Research

• Young workers are hit hardest: For example, in software development, employment for those aged 22 to 25 fell nearly 20 percent from its peak in late 2022, while older workers in the same field experienced growth.
• Overall slowdown in youth employment: Despite a strong U.S. job market, growth for young workers has slowed, with a 6 percent decline in highly exposed jobs for the 22-25 age group, compared to a over 9 percent increase for those aged 35-49.
• Role of AI usage: Job losses are concentrated in roles where AI automates tasks directly, replacing human effort. In jobs where AI serves as an assistant, employment for young workers actually increased.
• Robust statistical evidence: After controlling for economic factors, the 13 percent drop for young workers remains significant, with no similar effect for older cohorts.
• Adjustments through headcount, not wages: Wage data shows no meaningful changes, attributed to short-term rigidity in pay structures.
• Broad applicability: These trends hold across various sectors, education levels, and both remote and on-site positions, indicating a widespread impact.

Why Experience Matters in the Age of AI

The study suggests that AI excels at replacing codified knowledge—information learned through formal education—but struggles with tacit knowledge gained from hands-on experience. This makes entry-level workers more vulnerable to displacement, while seasoned professionals retain their value.

Researchers emphasize the importance of continuous monitoring to see how the job market adapts, drawing parallels to past technological shifts. This data provides a clearer picture than public statistics, offering insights for remote work strategies and career planning.