The Canary’s Echo: Stanford’s Digital Economy Lab Seminar in Perspective

Date

Date

Date

September 30, 2025

September 30, 2025

September 30, 2025

Author

Author

Author

Akshay Atam

Akshay Atam

Akshay Atam

Earlier this month, I broke down the findings of a Stanford paper "Canaries in the Coal Mine? Six Facts about the Recent Employment Effects of Artificial Intelligence" on my blog (link here). Yesterday, I had the chance to join the authors, on Zoom, live at the Stanford Digital Economy Lab Seminar where they presented their paper, took questions, and opened up the floor to a lively discussion.

Reading the paper by myself was one thing but during the seminar, hearing the authors debate, hedge, and respond in real-time gave me new ways to of thinking about the research. here are my key takeaways.

A different Atmosphere: Pragmatism over Hype

What struck with me the most was the authors' pragmatism. They didn't presented their findings as the "final word." Instead, they treated the study like an evolving lens, open to refinement.

  • They shared plans on turning their study into a dashboard that could track job changes over time.

  • Their acknowledgement of Fact 5 (no clear wage divergence yet) shifting in the future by saying it is something to monitor in the future.

  • They also mentioned that their results have echoed over other recent studies, signaling a consistent pattern.

Most notably, Bharat (one of the authors) directly asked the audience: what tests would you like to see? The openness of treating a seminar like a collaborative lab rather than a talk was refreshing to see.

Automation? Augmentation? Or Both?

One question from the audience asked if automation and augmentation are really opposites, or if most jobs actually contain a mix of both. The authors agreed: within an occupation, some tasks are ripe for automation, others for augmentation. Their method was to classify occupations by the share of tasks leaning one way or the other.

That nuance matters. It reminded me of my earlier reflection: automation and augmentation are a double-edged sword. The seminar added a twist. Often, both edges cut within the same role.

The Tacit Knowledge Gap

Several questions circled around a key theme: Why are young workers bearing the brunt?

  • One attendee compared it to Eric Brynjolfsson’s (one of the authors) earlier work, which suggested Generative AI could elevate junior workers. The authors responded that both could be true: AI might help with certain well-defined tasks, but for tasks that require tacit knowledge (judgment, customer interaction, on-the-job learning) experience still matters, and AI can’t substitute for it.

  • Another audience member, a software engineer, pointed out the risk: if entry-level coding tasks are automated away, who will give young engineers the chance to build the soft skills and project experience that define senior roles? The authors admitted this creates a public goods problem: firms are hesitant to train juniors when those workers might leave, and AI could make that hesitation even stronger.

This exchange made me pause. My earlier blog ended on the metaphor of canaries in the coal mine relating to early warning signals. But here, it felt less like a signal and more like a looming bottleneck: without entry-level jobs, how will tomorrow’s seniors be trained?

Are We Losing Skills Before the Job Even Starts?

Another thoughtful question was asked whether AI might be lowering the skill baseline even before workers enter the labor market. For instance, if students rely on AI through college and never fully develop their own soft skills.

The authors were cautious here. They noted that their data already shows similar effects beyond just young college grads, suggesting the trend isn’t only about education. But they admitted that productivity gains measured in AI studies often ignore social and tacit skills, and those might be precisely what’s slipping through the cracks.

My Reflections

The seminar layered complexity onto what I had previously read. Three things stood out to me most:

  1. AI isn’t just eliminating entry-level tasks, it’s reshaping the ladder itself: If firms hesitate to hire juniors, we risk losing the pipeline that produces experienced talent.

  2. Tacit knowledge is the new moat: Tasks requiring judgment, relational skills, and “learning by doing” remain resistant to AI. However, it's true only if we create the conditions for young workers to practice them.

  3. We need to treat this as a coordination problem, not just a technology shock: The “public goods problem” in training juniors isn’t new, but AI magnifies it. Collective solutions such as new policies, education practices, or industry norms may be needed.

Conclusion

When I first read the paper, I saw the decline of young workers in AI-exposed jobs as a canary in the coal mine. After hearing the seminar, I see it differently: the canary isn’t just warning us of danger, it’s telling us where the air is thinnest. The early-career pipeline is that fragile spot.

The seminar recording will be available on the Stanford Digital Economy Lab website in a few days. I’ll be revisiting it when it’s up, and I expect the conversation around this study will keep evolving. For now, I leave with the same conviction: these canaries are too loud to ignore.

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I’m always excited to collaborate on innovative and exciting projects!

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I’m always excited to collaborate on innovative and exciting projects!