New Research Provides Insights on Employees Being Replaced by AI

AI is replacing entry-level employees in jobs that can be handled by generative AI systems, according to a new in-depth study. 

Researchers from Stanford University—economists Ruyu Chen, Erik Brynjolfsson, and Bharat Chandar—found that early-career workers in industries most affected by AI have seen employment fall by 13% since 2022. The decline was measured against older workers in the same professions and employees in fields that face less direct competition from the technology. 

The report points to customer support and software development as two of the hardest-hit areas. From late 2022 to mid-2025, the number of entry-level jobs in these fields dropped by nearly 20%. At the same time, employment for more seasoned workers in those jobs increased. 

Looking more broadly, the study found that employment for people between the ages of 22 and 25 in AI-exposed roles fell by 6% during the period. By contrast, workers who were older in the same sectors saw a 9% job growth. 

The study also pointed to similar patterns in accounting, clerical and administrative roles, computer programming, and sales. 

The researchers suggest that older employees may be more resilient in this shift because they tend to have stronger interpersonal and communication skills. These abilities, often built up over years in the workplace, are harder to automate and remain in demand with employers. 

The economists analyzed payroll information from ADP, which processes pay for about 25 million workers across different companies. The dataset gave them detailed insights into job titles, worker ages, and employment trends. 

Interestingly, while younger workers in heavily exposed industries are losing ground, jobs in which AI is applied as a supportive tool rather than a replacement show no comparable decline. Instead, employees who integrate these systems into their workflow often benefit. 

Brynjolfsson explained that employees who embrace AI as a tool to boost productivity often reap benefits. In other words, the impact is not simply about job losses but also about a shift in how work is organized. 

A 2024 survey from the Federal Reserve Bank of St. Louis found that nearly one-quarter of employees were already using generative AI in their roles. Those who develop the ability to integrate these tools into their daily work are expected to have the strongest prospects moving forward. 

Meanwhile, the AI job market itself is showing momentum. A report from Burtch Works, a staffing company focused on analytics and AI, revealed that starting pay for entry-level AI professionals rose by 12% between 2024 and 2025. 

As other technologies like quantum computing continue to witness development milestones at companies like D-Wave Quantum Inc. (NYSE: QBTS), more jobs are likely to be altered and employees who don’t get up to speed could lose out. 

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS 

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