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Investing.com -- Artificial intelligence technology adoption has increased among firms in the Federal Reserve’s New York district but has not significantly affected employment so far, according to a blog post published by the regional Fed bank on Thursday.
The New York Fed economists reported that 40% of services firms used AI over the last year, up from 25% a year ago. Meanwhile, AI usage among manufacturers increased to 26% from 16% during the same period.
"Businesses reported a notable increase in AI use over the past year, yet very few firms reported AI-induced layoffs," the economists wrote. They added that for currently employed workers, "AI is more likely to result in retraining than job loss," consistent with their findings from last year.
Looking forward, nearly half of service firms plan to implement AI technology within the next six months, while one-third of manufacturers expect to do so.
Despite the limited employment impact so far, the New York Fed cautioned this trend might not continue. "Looking ahead, firms anticipate more significant layoffs and scaled-back hiring as they continue to integrate AI into their operations," the researchers noted.
The findings come amid widespread concerns that AI could create major challenges for employment in coming years, potentially affecting highly-paid professional and managerial positions most severely.