AI and the New Career Ladder: What Young Professionals Need to Know

The key findings from the paper are:

• Diverging Employment Trends: Starting in early 2023, firms that adopted generative AI saw a sharp decline in junior-level employment relative to firms that did not adopt AI. In contrast, senior employment in these same firms continued to grow.

• Hiring Slowdown is the Main Driver: The decrease in junior employment was primarily caused by a significant slowdown in new hiring, not by an increase in layoffs or separations. The paper also found that promotions for juniors into more senior roles actually increased in these firms after early 2023.

• Educational Impact: The effects of GenAI adoption were not uniform across all junior workers. The steepest employment declines were for graduates from mid-tier schools (Tier 2 and 3), while those from elite (Tier 1) and less selective (Tier 4 and 5) institutions were less affected.

• Industry Effects: The biggest impact was observed in the wholesale and retail trade sectors, where AI-adopting firms hired roughly 40% fewer juniors per quarter than non-adopters.

The authors conclude that generative AI appears to be a seniority-biased technological change that is reshaping labor demand within firms, particularly at the entry level, by automating tasks typically performed by junior workers.

This means the future of work isn't about competing with AI; it’s about collaborating with it. The new career path demands skills that AI can't easily replicate: critical thinking, creative problem-solving, and the ability to work with machines. This shift presents a unique challenge for an entire generation of young adults, but also an opportunity.

What Young People Should Do To AI-Proof Their Careers

Even as organizations navigate this transition, young professionals can take proactive steps to ensure their career success in an AI-powered world.

• Master AI Tools: Go beyond basic use. Learn how to identify and fix flaws in AI output, becoming an expert in quality control and assurance.

• Pursue Internships and Networks: Your personal network is more valuable than ever. Build connections that can lead to opportunities and provide mentorship in a shifting market.

• Engage in Bootcamps, Creative Side Projects, and Freelancing: These are powerful ways to demonstrate your value, adaptability, and ability to learn new skills outside of a traditional curriculum.

• Your Major Matters Less Than Being Adaptable and Collaborative: A degree is a starting point, but your ability to pivot, learn on the fly, and work seamlessly with both humans and AI will be your greatest asset.

• Focus on Developing the Skill of Discernment: As the researcher Doshay points out, the ability to judge, curate, and refine AI output will be the new ultimate (and human) competitive advantage.

Doshay adds, “A future job state for a lot of us is going to be quality control and quality assurance on the work of AI agents, so we’ll have to understand what is passable and what is good." He suggests that whether you're a software engineer or a writer, your key role will be to refine and validate AI-generated work, ensuring its quality and relevance.

AI is fundamentally changing the game for early-career professionals. The traditional career ladder may be in a transitional state, but new paths are emerging for those who know how to navigate them. Young professionals who build strong networks, learn to work alongside AI, and sharpen their ability to think critically and adapt quickly will still find opportunities. At the same time, organizations need to rethink how they nurture early talent. By redesigning entry-level roles to focus on higher-value work and embracing the unique perspective AI-native employees bring, companies can build stronger, more future-ready teams.

Reference: Generative AI as Seniority-Biased Technological Change: Evidence from U.S. Résumé and Job Posting Data* Seyed M. Hosseini† Guy Lichtinger‡ Preliminary August 2025

Want to read the full research? Download the paper here.