Why It Matters

AI adoption is creating a sharp generational divide in the job market. Stanford research found that employment for 22- to 25-year-olds in high-AI-exposure occupations fell 6 percent between late 2022 and July 2025, with early-career software developers experiencing a 20 percent drop. Meanwhile, workers 30 and older in the same roles saw employment grow 6-13 percent.

The disparity reveals a critical skills gap which will be addressed on February 3 in Congress.
While job postings requiring emerging tech skills pay 3-15 percent more, McKinsey found that 32 percent of organizations expect workforce reductions due to AI, while only 13 percent expect increases. Entry-level positions are disappearing fastest.

The gap: Harvard Business School research shows that while 85 percent of companies report skills-based hiring, only 0.14 percent eliminate degree requirements, highlighting the disconnect between policy and practice.

Broader Context

Congress is trying to respond to rapid AI adoption reshaping the workplace. Nearly 88 percent of organizations now use AI in at least one business function, yet most remain in early experimentation phases. Only one-third have scaled AI programs across enterprises.

Companies expect significant workforce changes ahead. Yet demand for AI-related skills commands substantial wage premiums—positions with four or more new skills pay 8.5 percent more nationally and up to 15 percent internationally.

Legislative momentum is building. Representatives Smucker and Mackenzie introduced legislation to expand online workforce training access, while multiple bipartisan bills emerged in December 2025 proposing AI workforce research hubs and requiring employer disclosure when AI drives layoffs.

The full Education and the Workforce Committee held a foundational hearing on January 14, 2026, establishing broader legislative frameworks. This subcommittee hearing narrows focus to practical workplace implementation.

The subcommittee is chaired by Rep. Rick Allen (R-GA-12), with Ranking Member Rep. Mark DeSaulnier (D-CA-10) focusing on worker protections and equitable AI adoption.

Between The Lines

Ranking Member Mark DeSaulnier (D-CA-10) has voiced concerns about workforce inequities from AI adoption, emphasizing worker protections. Rep. Jahana Hayes (D-CT-5), a former National Teacher of the Year, argues educators need Department of Education guidance on AI implementation.

The Association for the Advancement of Artificial Intelligence is advocating for H.R. 2385, the CREATE AI Act of 2025, which would establish a National Artificial Intelligence Research Resource.

This reflects a committee divided on emphasis: Republicans focusing on innovation and competitiveness, Democrats prioritizing worker protection and equitable transition support.

Competitive Landscape

Major technology firms are actively lobbying Congress on AI workforce issues. Microsoft Corporation spent $60,000 quarterly throughout 2025 on AI and cybersecurity skills training. Tata Consultancy Services maintained $80,000 quarterly filings, linking AI policy with STEM education funding and H-1B visa policies.

The Association for the Advancement of Artificial Intelligence spent $40,000 in the third quarter of 2025 advocating for basic AI research and education workforce development, specifically supporting H.R. 2385, the CREATE AI Act of 2025.

The Bottom Line

The subcommittee will examine AI workplace adoption as enterprise deployment accelerates but entry-level employment declines. While nearly 88 percent of organizations use AI and jobs requiring tech skills pay premiums, employment for workers aged 22-25 in AI-exposed fields has fallen 6 percent since late 2022.

The hearing builds on January’s full committee session and addresses the policy gap between rapid AI adoption and workforce displacement. Recent proposals like Rep. Larson’s Workforce of the Future Act seek $250 million for AI-sector workforce training, signaling recognition that federal systems require significant adaptation.

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