Artificial intelligence is starting to hit the job market many college graduates expect to enter. Against that backdrop, Forbes named two Texas schools to its 2026 “New Ivies” list: the University of Texas at Austin on the public side and Rice University on the private side.
The ranking lands as new evidence points to growing pressure on younger workers in AI-exposed fields. A Stanford paper using ADP payroll records found workers ages 22 to 25 in AI-exposed occupations experienced 16% relative employment declines after researchers controlled for firm-level shocks.
AI Pressure Builds
The Stanford researchers said the drop hit early-career workers hardest in occupations such as software developers and customer service representatives. They also found workers ages 22 to 25 in the most AI-exposed occupations saw employment fall 6% from late 2022 to September 2025, while workers ages 35 to 49 in those same occupations posted more than 8% growth.
The paper also drew a sharper line between jobs AI automates and jobs AI augments. The authors found entry-level employment declined in work AI automates, while occupations where AI mostly augments workers did not show the same pattern.
As previously reported by The Dallas Express, AI exposure is already a live issue for Texas workers. A recent Texas-focused analysis found computer programmers faced the highest estimated AI replacement risk in the state. DX also previously reported that entry-level and tech-related jobs have already been losing ground nationally as companies automate more junior-level work.
Texas Schools Push To Adapt
Forbes said its list drew on input from more than 100 C-suite and hiring executives. The magazine said employers are looking harder at whether colleges are producing graduates who can work with AI instead of getting replaced by it.
That shift is showing up in Texas.
Forbes reported that UT-Austin announced plans in February to hire 50 faculty members for a newly created School of Computing. The goal is to expand computing and AI education across majors, not just in traditional computer science tracks.
Rice is pushing AI into both technical and liberal arts coursework, according to Forbes. In upper-division data science classes, students make AI models such as ChatGPT and Claude debate each other, then evaluate the arguments. In an introductory English course, students write an essay, prompt an AI model to write on the same topic, and then discuss differences in bias and reasoning.
“AI won’t fully replace all those entry-level jobs, but those people that know how to use AI will replace those that don’t know how to use AI,” Rice University provost Amy Dittmar told Forbes.
Why It Matters
This story is bigger than a college ranking.
Texas families are paying close attention to whether a degree still opens the door to stable work, especially in fields built around digital information and screen-based tasks. Forbes reported that nearly 25% of surveyed executives said AI would reduce their need for entry-level college graduates, while 60% said the technology would change staffing needs.
That makes the UT-Austin and Rice recognition more than a prestige story. It is a signal that colleges now face pressure to prove they can prepare students for a labor market that is changing fast, and already cutting into the bottom rung.
