The continued development and adoption of synthetic intelligence continues to boost considerations about widespread job losses. Over the previous three years, our regional enterprise surveys have requested companies about their AI adoption and its results on their workforces. This 12 months, we discovered that AI use amongst regional companies has continued to rise sharply, with greater than 60 % of service companies and about half of producers now utilizing AI—a notable improve from 40 % and 26 %, respectively, reported in 2025. Regardless of this fast adoption, regional companies’ investments in AI are usually modest, utilization tends to be concentrated amongst a small share of employees inside companies, and layoffs have remained unusual. And, whereas some companies have scaled again hiring as a result of AI, others have added employees to assist them use it. Retraining staff in response to AI stays the first manner companies are adjusting their workforces.
AI Adoption Has Turn into A lot Extra Widespread within the Office
Our August enterprise surveys requested companies within the New York and Northern New Jersey area whether or not they used AI as a part of their enterprise processes previously six months, questions we have now 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 beneath, 61 % of service companies reported utilizing AI this 12 months, up from 40 % final 12 months and 25 % in 2024. Companies in knowledge-intensive sectors, equivalent to info, enterprise providers, and finance, had the very best utilization charges. Amongst producers, 51 % reported utilizing AI as a part of their enterprise processes, roughly double the 26 % from final 12 months and triple the 16 % in 2024. These shares are towards the excessive finish of the vary of current research of AI use within the office.
AI Adoption Has Continued to Enhance
Supply: Federal Reserve Financial institution of New York, Regional Enterprise Surveys, August 2024, 2025, 2026.
Word: Companies utilizing AI completely as an info search instrument however nothing else weren’t counted as AI customers.
Whereas AI adoption has turn out to be widespread, most companies have made solely restricted investments within the expertise. Three-quarters of service companies and greater than 90 % of producers characterize their AI investments as minimal to modest, starting from use of free AI instruments to allocating a small share of total spending to AI instruments or providers. In the meantime, simply 15 % of service companies—however no producers—point out they’ve dedicated vital assets to AI adoption, with solely about 5 % of service companies characterizing AI adoption as a significant strategic funding. Amongst AI adopters, the median share of employees utilizing it was simply 17 % for service companies and seven % 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 shunned adopting it? As proven within the chart beneath, price doesn’t appear to be the principle deterrent—it was among the many least cited causes by non-adopters. About half of non-adopters mentioned the kind of work they do doesn’t lend itself to AI, whereas roughly 1 / 4 indicated AI is presently not ok to supply advantages to their enterprise. There have been additionally some considerations about utilizing AI. Greater than a 3rd of non-adopters had been involved about knowledge privateness, safety, or confidentiality, and an identical share expressed considerations 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
Supply: Federal Reserve Financial institution of New York, Regional Enterprise Surveys, August 2026.
Retraining Stays Frequent, Layoffs Restricted
As in previous years, we requested companies in the event that they had been making any adjustments to their workforces on account of AI adoption, as proven within the chart beneath. Solely 4 % of service companies reported shedding employees in response to AI over the previous six months, in comparison with simply 1 % in final 12 months’s survey, whereas no producers reported layoffs this 12 months or final 12 months. About 15 % of service companies mentioned they’d employed fewer employees than they’d have if not for AI use, just like the 12 % reported final 12 months. A handful of producers reported hiring fewer employees as a result of AI, in comparison with none final 12 months.
Nevertheless, offsetting these reductions in hiring, some companies added employees to assist them leverage AI. About 13 % of service companies mentioned they’d employed extra employees as a result of AI, just like final 12 months’s findings, although no producers elevated hiring as a result of AI this 12 months.
Methods Service Companies Are Adjusting Their Workforces
Share of AI customers (%)
Methods Producers Are Adjusting Their Workforces
Share of AI customers (%)
Supply: Federal Reserve Financial institution of New York, Regional Enterprise Surveys, August 2024, 2025, 2026.
Word: Companies weren’t requested whether or not they employed fewer employees in 2024.
In step with our earlier surveys, current employees are more likely to be retrained than changed by AI. Amongst companies that use AI, simply over a 3rd of service companies and greater than 20 % of producing companies report retraining employees in response to AI. Companies report retraining employees throughout the academic spectrum, although considerably extra of these with faculty levels.
These findings align with the broader analysis literature, which additionally tends to seek out restricted labor market results from AI adoption thus far when it comes to layoffs or lowered hiring. Nevertheless, one current research suggests entry-level employees could also be affected considerably, as AI can substitute for routine duties usually carried out by newer staff, probably creating boundaries to workforce entry even because it enhances productiveness for knowledgeable employees.
How Are Companies Retraining Staff?
Given the significance of retraining employees to make use of AI, we requested companies concerning the sorts of retraining they’ve offered. Responses point out that almost all companies are centered on serving to staff do their present jobs extra successfully relatively than getting ready them for totally 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), the best way to automate repetitive or routine duties, immediate engineering to get higher outcomes from AI techniques, and utilizing AI functions tailor-made to particular job capabilities. For instance, some companies are coaching staff to make use of AI for advertising and marketing and creating social media content material, whereas one agency had applied 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 the best way 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 follow.
Wanting Forward
Three years of information from our regional enterprise surveys counsel companies are persevering with to adapt and alter as a result of AI use, however not by eliminating huge numbers of jobs. As a substitute, this new expertise is reshaping work itself, with companies investing of their current workforces relatively than changing giant swaths of individuals. As AI adoption turns into the norm relatively than the exception, retraining has solely gained in significance. Proof from our surveys thus far confirms what many research are displaying: that AI has been extra prone to increase employees than change them. That mentioned, 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.
cite this submit:
Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Nick Montalbano, “Companies Are Utilizing AI to Remodel Work, Not Reduce Jobs,” Federal Reserve Financial institution of New York Liberty Avenue Economics, September 1, 2026, https://doi.org/10.59576/lse.20260901
BibTeX: View | Obtain
@article{JaisonR.Abel,RichardDeitz,NataliaEmanuel,andNickMontalbano2026,
writer={Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Nick Montalbano},
title={Companies Are Utilizing AI to Remodel Work, Not Reduce Jobs},
journal={Liberty Avenue Economics},
notice={Liberty Avenue Economics Weblog},
quantity={September 1},
12 months={2026},
url={https://doi.org/10.59576/lse.20260901}
}
Disclaimer
The views expressed on this submit are these of the writer(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 duty of the writer(s).
