Fed study finds more firms adopting AI with few job cuts

A recent Federal Reserve Bank of New York (New York Fed) study reveals that while the use of artificial intelligence (AI) among businesses has grown significantly over the past year, very few companies have carried out AI-related layoffs.

The study, which examined firms in New York and Northern New Jersey, asked companies whether they had implemented AI and made any changes to their workforce.

Findings show a notable increase in AI adoption, yet workforce reductions linked to AI remain rare.

In the service sector, 40% of companies reported using AI this year, up from 25% last year, with 44% planning to adopt AI within the next six months.

Manufacturing firms also saw growth in AI use, rising from 16% last year to 26% this year. Around one-third of all companies surveyed said they plan to introduce AI in the coming six months.

Copied