Study shows young software developers are losing jobs to AI tools

The rise of generative AI tools like ChatGPT has erased nearly a fifth of jobs among young software developers, raising alarm for future talent pipelines.

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A Stanford University study reveals that generative AI tools, such as ChatGPT, have led to a nearly 20 percent decline in employment for software developers aged 22 to 25 since late 2022. In contrast, older developers have seen little job loss and, in some cases, gains.

The research analysed anonymised ADP payroll data across millions of employees and thousands of firms.

The decline in junior roles stems from AI automating routine coding tasks, often the first entry point for new developers, while complex tasks favour experienced professionals.

Industry leaders reflect the shift. Amazon Web Services’ head called layoffs of junior engineers a misstep, arguing that these roles are essential for innovation.

Meanwhile, developer sentiment is mixed: over half believe AI codes better than humans, but 37 percent worry it threatens entry-level opportunities.

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