AI and the Future of Work: How Students Entering the Workforce Are Being Impacted

Artificial intelligence is rapidly transforming the world of work, and nowhere is this shift more visible than among students and young professionals just beginning their careers. For decades, the entry-level job has served as the training ground where new graduates learn practical skills, gain mentorship, and begin their climb up the career ladder. But as companies increasingly adopt AI to streamline operations and automate routine tasks, many of these foundational opportunities are being reshaped — or eliminated entirely.

Recent research from Stanford University illustrates just how significant this shift has become. According to the study, workers aged 22–25 in roles most exposed to AI technologies have experienced a 13% relative decline in employment since 2022. Industries such as customer service, basic accounting, data entry, software QA, and digital content creation — all traditional entry points for young workers — have become some of the most heavily automated.

The troubling part is that these early-career workers are not being replaced by older workers or shifted into new roles at the same rate. Instead, AI is taking over many tasks that once provided junior employees with hands-on learning. As Open Data Science notes, generative AI is particularly effective at “codified knowledge” tasks — exactly the kind of work recent graduates are typically hired to do.

Yet the landscape isn’t simply one of lost jobs. In many organizations, roles are being redefined rather than removed. Instead of spending hours preparing reports, conducting basic research, or drafting initial versions of documents, junior employees are now expected to review AI outputs, provide strategic context, and focus on higher-level thinking. AI has become a tool that handles the repetitive tasks — but this shift requires a different skill set from young workers entering the job market.

The broader labor market reflects this transformation as well. According to the World Economic Forum, 40% of employers expect AI to reduce headcount in specific functions, especially administrative, clerical, and analytical roles that historically served as stepping stones for early-career talent.

Even more striking, PwC’s 2025 AI Jobs Barometer found that skills requirements in AI-exposed roles are evolving up to 66% faster than in other fields.

This rapid pace of change creates a challenging environment for students trying to enter a market that looks vastly different from the one they were trained for just a few years earlier.

Another concern emerging from recent research is the potential loss of experiential learning opportunities. Entry-level tasks have traditionally been the foundation upon which junior employees build expertise. However, when AI takes over these foundational tasks, young workers may lose access to the hands-on experience required to develop deeper skills. According to a working paper published on arXiv, the automation of early-career tasks could diminish the intergenerational transfer of tacit knowledge — the kind of learning that can only occur through doing, observing, and receiving mentorship.

Beyond the analytics and academic studies, the sentiment among young workers is shifting as well. Many Gen Z students and graduates are expressing growing concern that their degrees no longer guarantee stable employment. Reporting from Business Insider shows a noticeable increase in interest in skilled trades, where hands-on work and physical tasks are less likely to be automated. Similarly, surveys highlighted by the New York Post reveal that a significant portion of Gen Z fears that white-collar career paths may become less reliable as AI continues to expand its capabilities.

But despite these challenges, the rise of AI also presents meaningful opportunities for students willing to adapt. Demand for workers with AI literacy, data skills, and machine learning expertise continues to grow across every major industry. Even for non-technical roles, the ability to collaborate effectively with AI tools has become a critical advantage. Human-centered skills — such as creativity, communication, strategic thinking, and adaptability — are also becoming more valuable, not less, as organizations look for employees who can bring insight and judgment to AI-assisted workflows.

Forward-looking employers are already responding by offering hybrid training models, apprenticeships, and continuous learning programs designed to support early-career workers in an AI-powered environment. Instead of replacing junior roles completely, these companies are working to redefine them — creating new pathways for growth that blend human skill with technological augmentation.

For students entering the workforce, this moment is both a challenge and an invitation. Success in the era of AI won’t depend on avoiding the technology, but on understanding how to use it. Building AI literacy, focusing on skills that complement automation, exploring alternative entry paths, and staying agile will be key strategies for navigating the evolving landscape.

AI may be changing the first steps of the career ladder, but it’s also creating new ones. With the right strategies, today’s students can still build meaningful, resilient, and future-proof careers — even as the ground beneath them shifts.