Businesses Are Using AI to Transform Work, Not Cut Jobs
New York Fed Liberty Street Economics (institute research) · 1 Sep 2026
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Where this sits in the debate
- Will AI actually boost productivity and growth? · its finding: it depends (why studies differ)
- Will AI destroy more jobs than it creates? · its finding goes against the claim (why studies differ)
Direction of the finding as read from the abstract by an AI model (AI-written).
Source excerpt
The ongoing advancement and adoption of artificial intelligence continues to raise concerns about widespread job losses. Over the past three years, our regional business surveys have asked firms about their AI adoption and its effects on their workforces. This year, we found that AI use among regional businesses has continued to rise sharply, with more than 60 percent of service firms and about half of manufacturers now using AI—a notable increase from 40 percent and 26 percent, respectively, reported in 2025. Despite this rapid adoption, regional firms’ investments in AI are generally modest, usage tends to be concentrated among a small share of workers within firms, and layoffs have remained uncommon. And, while some firms have scaled back hiring due to AI, others have added workers to help them use it. Retraining employees in response to AI remains the primary way firms are adjusting their workforces.
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- Published
- 2026 (2 months ago)
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