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Microsoft’s AI Risk Metrics Spotlight Job Displacement as Gen Z Tech Unemployment Climbs

Data reveal generative AI’s reshaping of routine knowledge roles has coincided with a three-point rise in tech unemployment for 20- to 30-year-olds.

Bill Gates says AI is rapidly evolving and could potentially take over professional jobs at a moment's notice.
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Bill Gates attends the 11th Breakthrough Prize Ceremony at Barker Hangar on April 05, 2025 in Santa Monica, California.

Overview

  • Microsoft Research’s “Working with AI” study introduced an “AI applicability score,” leveraging 200,000 Bing Copilot interactions to quantify which occupations face the greatest generative AI exposure.
  • Knowledge-based and communication roles—such as translators, customer service representatives, and content writers—rank among the highest-risk occupations, while manual and physical jobs like dredge operators and water treatment plant operators remain largely insulated for now.
  • Goldman Sachs data show the tech-sector unemployment rate for workers aged 20-30 has risen by three percentage points since early 2024, marking an early sign of AI-driven layoff pressures on entry-level employees.
  • Industry voices diverge on AI’s net employment impact: Harsh Goenka forecasts a surge in AI-centric jobs like prompt engineering and ethics specialists, whereas former Google executive Mo Gawdat asserts that AI will eliminate more roles than it creates.
  • Experts including Bill Gates advise young professionals to move beyond basic AI tool literacy by cultivating adaptability and deeper skills to navigate disappearing entry-level positions.