When it comes to job cuts, older workers are often disproportionately affected. But a new survey of chief executive officers suggests this won’t be a given as companies adopt artificial intelligence. More than 40% of CEOs plan to cut junior roles over the next one to two years and shift toward mid-level or senior positions, while only 17% plan to make junior roles a bigger part of the mix, according to a global survey by Oliver Wyman — numbers essentially flipped from just a year ago.
That’s because of the types of tasks that AI agents are able to perform, from writing code at the level of a junior developer to evaluating sales leads. What agents can’t do in many fields is make judgment calls using the insight that comes from on-the-job experience. The Oliver Wyman survey builds on a Harvard University study showing firms adopting generative AI have significantly reduced junior-level positions while keeping senior employment largely stable.
A Stanford University study found that young workers were 16% more likely to lose their jobs in the most AI-exposed fields. IBM appears to be bucking the trend, planning to triple entry-level hiring in the US this year and rewriting job descriptions for the AI era. But even if AI is tipping the scales toward older workers, it’s no guarantee of job security for them. “Firms’ commitment to workers is weaker and weaker,” said Teresa Ghilarducci, a labor economist at the New School. Foregoing younger talent now also risks leaving companies with a shortage of experienced workers in the future.
This story was originally featured on Fortune.com.
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