New York Fed survey finds AI mostly augments jobs, with firms opting to retrain staff

A recent survey by the Federal Reserve Bank of New York examined artificial-intelligence use among businesses in New York and New Jersey. It found that 61% of service-sector firms and 51% of manufacturers have integrated AI into their processes, a notable increase from the previous year. Despite this growth, only 4% of AI-using service firms reported laying off workers because of the technology, and no manufacturers cited AI-related dismissals; 15% of service firms said AI caused them to hire fewer employees.

Conversely, 13% of service firms hired additional staff to help leverage AI, and more than one-third of service firms and over 20% of manufacturers are providing retraining, especially for college-educated workers. Companies emphasized boosting current job effectiveness rather than creating entirely new roles. Researchers concluded that AI is presently augmenting workers more than replacing them, but warned that these patterns could shift as AI adoption matures.