A recent study by the Federal Reserve Bank of New York indicates a rise in AI adoption among businesses, yet minimal job displacement has occurred. Service firms have nearly doubled their AI usage, from 25% to 40% in the past year, with expectations of further growth to 44% within the next six months. Manufacturing firms also show increased adoption, rising from 16% to 26%, with approximately a third planning to implement AI in the near future.
Despite increased AI usage, layoffs directly attributed to AI remain scarce. Only 1% of service firms reported AI-related job cuts, while manufacturers reported none. The most significant impact has been a reduction in hiring, particularly affecting workers with college degrees. Around 12% of service firms have scaled back hiring due to AI, though a similar percentage are hiring individuals with AI skills.
Looking ahead, firms anticipate more significant layoffs and scaled-back hiring as they continue to integrate AI into their operations. Nearly half of firms plan to retrain employees to use AI, suggesting a focus on augmenting skills rather than replacing jobs. The New York Fed suggests AI may be making it harder for job seekers to find employment, especially in fields where generative AI can automate tasks.
