Stanford proves AI is eliminating entry-level jobs

PLUS: Perplexity's $42.5M publisher payout and Musk vs Apple

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Welcome back, AI’ers!

Here’s What’s On The Menu For Today

  • Stanford's data on AI's entry-level job impact

  • Perplexity's $42.5M publisher payout

  • Musk sues Apple and OpenAI over monopoly claims

  • Will Smith's AI-generated crowd video

AI ON MY MIND

Happy Tuesday,

A new study from Stanford University provides the first hard data confirming that generative AI is impacting jobs for younger workers. The research points to a significant drop in opportunities for those just starting their careers in specific tech-focused roles.

The findings show that while seasoned professionals are currently protected by their on-the-job experience, the entry points for new talent are shrinking. If this trend holds, how will the next generation of experts gain the skills needed to lead in the future?

By the way, I've been getting questions about how AI works in practice, so I'm launching a separate newsletter that dives deeper into real business applications and practical advice. [Click here if you're interested].

-Jelani Fuel (Co-founder of Best of AI)

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TODAY’S TOP STORIES

AI's Entry-Level Toll

The Recap: A new Stanford University study offers the first concrete evidence that generative AI is reducing jobs for younger workers, confirming long-held fears with hard payroll data. The research shows a clear decline in opportunities for those just starting their careers in specific tech-focused sectors.

Unpacked:

  • The study, which analyzed ADP payroll data, found a 16% decline in employment for workers aged 22 to 25 in AI-vulnerable fields like software development and customer support.

  • AI's current strengths align with "book knowledge," similar to recent graduates, while more senior workers are protected by their tacit, on-the-job experience that AI cannot yet replicate.

  • Researchers noted that a company's approach matters, with businesses using AI to augment their workforce hiring more than those using it to simply replace human workers.

Bottom line: This study acts as an early warning for the future of work. While experienced professionals remain secure for now, it raises critical questions about how the next generation will gain the skills needed to become senior experts if their entry points disappear.

Perplexity's Publisher Payout

The Recap: In response to legal threats and widespread criticism over content scraping, AI search engine Perplexity is launching a $42.5 million revenue-sharing program. The initiative aims to directly compensate publishers for content used to generate its AI answers.

Unpacked:

  • The move follows significant legal and industry pressure, including a copyright lawsuit from News Corp and public criticism from partners like Cloudflare for its data collection practices.

  • Publishers will earn through multiple revenue streams, receiving a share when their content drives traffic via the Comet browser or is used in AI-generated search results and assistant responses.

  • This fund is backed by a new Comet Plus subscription, a $5/month service that promises to return 80% of its revenue directly to participating publishers.

Bottom line: This revenue-sharing model could establish a critical framework for how AI companies and publishers coexist. Its ultimate success now hinges on whether users are willing to pay for a premium, ethically sourced AI search experience.

MY FAVORITE AI TOOLS

Relevance is my favorite AI tool right now (even more so than N8N).

Here’s why:

It’s an AI agent building tool that doesn’t require you to build out the logic using nodes. Instead, you use natural language to build out these agents. But the best thing imo is that you can build AI Agent teams.

Like agents talking to each other completing a goal until its done. It’s nuts. No other tool on the market is doing this. You have to check it out.

(Try it out →Link)

👾 AI Tools We Use Everyday

➡️ N8N for AI Agents - Literally use this everyday to write this newsletter (link)

➡️ Axiom AI - AI Browser automation to scrape anything on the web (link)

➡️ GummySearch - AI Reddit research (link)

Tools are sourced from our database and are not sponsored or affiliated.

MORE STORIES

Musk's Monopoly Gambit

The Recap: Elon Musk’s xAI is suing Apple and OpenAI, claiming their partnership creates an unfair monopoly. The lawsuit alleges the collaboration deliberately suppresses rival chatbots like Grok in Apple's App Store.

Unpacked:

  • The lawsuit, filed in Texas, claims Apple prevents other chatbots from ranking above ChatGPT in its App Store, denying competitors like Grok valuable user data needed for improvement.

  • The filing frames the partnership as inherently monopolistic by combining Apple's 65% share of the U.S. smartphone market with OpenAI’s 85% dominance in the AI chatbot space.

  • The case is a critical test for AI antitrust law, while OpenAI dismisses the filing as consistent with Musk's "ongoing pattern of harassment."

Bottom line: This legal battle is more than just a clash between tech titans; its outcome could set a major precedent for competition in the AI market. The court's decision will likely shape how AI platforms and app stores interact for the foreseeable future.

Spot the AI Fan

The Recap: Will Smith is facing accusations of using AI after fans spotted digitally manipulated crowd members in a recent tour video. The incident fuels a growing debate over digital authenticity and content manipulation on major platforms.

Unpacked:

  • Observers pointed to distorted faces and oddly formed hands in the video as evidence that AI was used to augment the audience.

  • This isn't an isolated platform issue; a YouTuber recently reported that YouTube may be applying "AI upscaling" to videos without consent, which could erode viewer trust.

  • The incident reflects a wider trend of AI blurring reality in creative fields, including viral AI bands and entirely fabricated photos of music legends.

Bottom line: This situation previews a future where distinguishing authentic content from AI-generated illusions becomes a daily challenge. This shift pressures platforms and creators to become more transparent about their use of AI tools.

OTHER NEWS YOU MAY LIKE

Anthropic updated its Claude AI models with the ability to end potentially distressing interactions, a precautionary step to mitigate risks to AI welfare amid the growing debate on digital sentience.

MIT's latest State of AI in Business report found that AI's initial impact is displacing outsourced and offshore workers more than domestic employees, adding a new dimension to the job loss conversation.

Analysis suggests the next economic downturn could trigger a widespread wave of AI-driven job replacement, as companies historically use recessions to accelerate automation and reduce labor costs.

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THAT’S IT FOR TODAY

Until next time, stay safe.

-Best of AI Team

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