AI Adopters Aren’t Slashing Jobs So Far, NY Fed Survey Shows – BNN Bloomberg

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(Bloomberg) — Firms that adopted artificial intelligence aren’t shedding large numbers of staff, and they expect to be net hirers in the coming months, according to a regional survey by the Federal Reserve Bank of New York.

On net, about 5% of service-industry firms in the New York area that reported using AI said that they reduced employees over the past six months, according to the Fed study conducted in August. The survey found little change in employment at manufacturers that adopted AI.

The researchers found that churn in employment among firms deploying AI is set to increase. But service companies using the technology said they’re more likely to add jobs than reduce them over the coming six months, a reversal of the pattern in the preceding period.

“These dynamics suggest that firms plan net hiring due to the use of AI, not net worker reductions,” the New York Fed economists wrote in a blog post.

Overall, 25% of service firms reported using AI and the share is set to rise to 32% in the coming six months. Among manufacturers, it’s forecast to remain at the current level of 16%. Across both industry groups, AI adopters said they are retraining around one-quarter to one-third of their staff, and predicted that the share will rise sharply in the coming months.

The most widely cited use of the technology was for marketing, advertising, business analytics and customer service, according to the survey.

Overall, the New York Fed economists found that the labor market effects of AI remain relatively small, but cautioned that more changes might come when the technology is more fully integrated into business processes.