AI Adoption Leads to Decline in Youth Employment

Recent studies indicate a decline in youth employment due to the adoption of AI. Since late 2022, early-career workers have experienced a 13% drop in employment, while older cohorts in the same roles saw a 6-9% increase. This decline is evident only where AI automates tasks, suggesting an impact of AI on the labor market, though not causally proven.

AI is increasingly taking over the production side of operations. Large Language Models (LLMs) are drafting 30% of Microsoft's code, processing billions of lines daily, and generating BCG's slides. This shift indicates that the traditional model of junior workers generating and senior workers judging is no longer applicable.

This change is likened to a 'canary in the coal mine' for broader AI disruption in the labor market. However, it remains uncertain whether these results indicate lasting change or a temporary pause as firms determine AI's role. In uncertain times, reducing youth hiring and relying on experience may be easier.

Thus, these results should be interpreted with nuance. It is a warning signal, not definitive proof.