The continuing development and adoption of synthetic intelligence continues to lift issues about widespread job losses. Over the previous three years, our regional enterprise surveys have requested corporations about their AI adoption and its results on their workforces. This yr, we discovered that AI use amongst regional companies has continued to rise sharply, with greater than 60 p.c of service corporations and about half of producers now utilizing AI—a notable improve from 40 p.c and 26 p.c, respectively, reported in 2025. Regardless of this fast adoption, regional corporations’ investments in AI are typically modest, utilization tends to be concentrated amongst a small share of staff inside corporations, and layoffs have remained unusual. And, whereas some corporations have scaled again hiring on account of AI, others have added staff to assist them use it. Retraining staff in response to AI stays the first approach corporations are adjusting their workforces.
AI Adoption Has Turn out to be A lot Extra Widespread within the Office
Our August enterprise surveys requested corporations within the New York and Northern New Jersey area whether or not they used AI as a part of their enterprise processes prior to now six months, questions we now have requested every year since 2024. AI adoption within the office has continued to extend sharply and has now turn out to be widespread. As proven within the chart under, 61 p.c of service corporations reported utilizing AI this yr, up from 40 p.c final yr and 25 p.c in 2024. Companies in knowledge-intensive sectors, equivalent to info, enterprise providers, and finance, had the best utilization charges. Amongst producers, 51 p.c reported utilizing AI as a part of their enterprise processes, roughly double the 26 p.c from final yr and triple the 16 p.c in 2024. These shares are towards the excessive finish of the vary of present research of AI use within the office.
AI Adoption Has Continued to Enhance
Observe: Corporations utilizing AI solely as an info search software however nothing else weren’t counted as AI customers.
Whereas AI adoption has turn out to be widespread, most corporations have made solely restricted investments within the expertise. Three-quarters of service corporations and greater than 90 p.c of producers characterize their AI investments as minimal to modest, starting from use of free AI instruments to allocating a small share of general spending to AI instruments or providers. In the meantime, simply 15 p.c of service corporations—however no producers—point out they’ve dedicated vital assets to AI adoption, with solely about 5 p.c of service corporations characterizing AI adoption as a serious strategic funding. Amongst AI adopters, the median share of staff utilizing it was simply 17 p.c for service corporations and seven p.c for producers. Briefly, AI adoption within the office is now pretty broad however investments and employee utilization stay restricted.
With AI use within the office now widespread, why have some companies kept away from adopting it? As proven within the chart under, value doesn’t appear to be the principle deterrent—it was among the many least cited causes by non-adopters. About half of non-adopters stated the kind of work they do doesn’t lend itself to AI, whereas roughly 1 / 4 indicated AI is presently not adequate to supply advantages to their enterprise. There have been additionally some issues about utilizing AI. Greater than a 3rd of non-adopters had been involved about knowledge privateness, safety, or confidentiality, and an analogous share expressed issues about accuracy or reliability. Additional, roughly a 3rd indicated they presently lack employees with the technical abilities to make use of it successfully.
Why Companies Have Not Adopted AI
Retraining Stays Frequent, Layoffs Restricted
As in previous years, we requested corporations in the event that they had been making any adjustments to their workforces on account of AI adoption, as proven within the chart under. Solely 4 p.c of service corporations reported shedding staff in response to AI over the previous six months, in comparison with simply 1 p.c in final yr’s survey, whereas no producers reported layoffs this yr or final yr. About 15 p.c of service corporations stated that they had employed fewer staff than they’d have if not for AI use, much like the 12 p.c reported final yr. A handful of producers reported hiring fewer staff on account of AI, in comparison with none final yr.
Nevertheless, offsetting these reductions in hiring, some corporations added staff to assist them leverage AI. About 13 p.c of service corporations stated that they had employed extra staff on account of AI, much like final yr’s findings, although no producers elevated hiring on account of AI this yr.
Methods Service Corporations Are Adjusting Their Workforces
Share of AI customers (p.c)
Methods Producers Are Adjusting Their Workforces
Share of AI customers (p.c)
Observe: Corporations weren’t requested whether or not they employed fewer staff in 2024.
Per our earlier surveys, present staff are more likely to be retrained than changed by AI. Amongst companies that use AI, simply over a 3rd of service corporations and greater than 20 p.c of producing corporations report retraining staff in response to AI. Corporations report retraining staff throughout the academic spectrum, although considerably extra of these with faculty levels.
These findings align with the broader analysis literature, which additionally tends to search out restricted labor market results from AI adoption to this point when it comes to layoffs or diminished hiring. Nevertheless, one latest research suggests entry-level staff could also be affected considerably, as AI can substitute for routine duties typically carried out by newer staff, doubtlessly creating limitations to workforce entry even because it enhances productiveness for skilled staff.
How Are Companies Retraining Employees?
Given the significance of retraining staff to make use of AI, we requested companies in regards to the sorts of retraining they’ve offered. Responses point out that almost all corporations are centered on serving to staff do their present jobs extra successfully fairly than making ready them for fully new roles. Coaching falls into a number of key classes: primary AI literacy and tool-specific instruction (equivalent to studying to make use of chatbots, AI assistants, or different generative AI instruments), tips on how to automate repetitive or routine duties, immediate engineering to get higher outcomes from AI programs, and utilizing AI functions tailor-made to particular job features. For instance, some corporations are coaching staff to make use of AI for advertising and creating social media content material, whereas one agency had carried out AI for accounts payable and receivable with “human-in-the-loop” oversight.
Notably, many corporations emphasised the significance of coaching staff on accountable AI use, together with educating them tips on how to confirm AI outputs, perceive potential biases, comply with knowledge safety protocols, and keep away from over-reliance on the expertise. Supply strategies diverse extensively, from formal workshops and exterior consultants to casual show-and-tell classes and peer studying, with many organizations encouraging experimentation and hands-on observe.
Trying Forward
Three years of information from our regional enterprise surveys counsel corporations are persevering with to adapt and alter on account of AI use, however not by eliminating huge numbers of jobs. As a substitute, this new expertise is reshaping work itself, with corporations investing of their present workforces fairly than changing massive swaths of individuals. As AI adoption turns into the norm fairly than the exception, retraining has solely gained in significance. Proof from our surveys to this point confirms what many research are displaying: that AI has been extra more likely to increase staff than change them. That stated, AI expertise and its functions are nonetheless evolving quickly, and these patterns might shift as adoption matures.
Jaison R. Abel is head of Microeconomics within the Federal Reserve Financial institution of New York’s Analysis and Statistics Group.
Richard Deitz is an financial coverage advisor within the Federal Reserve Financial institution of New York’s Analysis and Statistics Group.
Natalia Emanuel is a analysis economist within the Federal Reserve Financial institution of New York’s Analysis and Statistics Group.
Nick Montalbano is an information analytics specialist within the Federal Reserve Financial institution of New York’s Analysis and Statistics Group.
The way to cite this publish:
Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Nick Montalbano, “Companies Are Utilizing AI to Rework Work, Not Reduce Jobs,” Federal Reserve Financial institution of New York Liberty Avenue Economics, September 1, 2026, https://doi.org/10.59576/lse.20260901
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The views expressed on this publish are these of the creator(s) and don’t essentially replicate the place of the Federal Reserve Financial institution of New York or the Federal Reserve System. Any errors or omissions are the accountability of the creator(s).
