A new Stanford University paper finds that generative artificial-intelligence tools are already reshaping the U.S. labor market by cutting opportunities for the youngest workers. Analyzing anonymized payroll records from ADP between late 2022 and mid-2025, the researchers—economists Erik Brynjolfsson, Ruyu Chen and Bharat Chandar—document a 13% drop in employment for 22- to 25-year-olds starting out in occupations most exposed to AI automation, such as software development and customer service. The study shows the contraction is concentrated at the entry level; employment for more experienced employees in the same occupations held steady or edged higher. Jobs in less AI-exposed fields also continued to grow, suggesting the technology is displacing rather than broadly depressing demand for labor. Wage levels have so far remained largely unchanged, indicating that the immediate impact is on hiring rather than pay. The authors warn that the pattern could foreshadow wider disruption as generative AI systems become more capable. They urge companies and policymakers to focus on human-machine collaboration and to rethink incentives that favor wholesale automation over augmentation.