Companies are using artificial intelligence more in their workflows, but this technology has not had a significant impact on layoffs.
The service company has almost doubled the amount of AI used this year compared to the same time last year. 40% say they use Tech compared to 25% last year. And 26% said they adopted the technology compared to 16% last year, according to an analysis of an August business survey from the Federal Reserve Bank of New York, released Thursday. The survey asked businesses in the New York/Northan New Jersey area if they have used AI in their businesses over the past six months and will use it in the next six months.
Among AI-based services companies, 13% expect the technology to affect layoffs over the next six months. However, almost the same amount of services said in a survey last year they expected AI-induced layoffs, but only 1% of service companies reported that they had fired employees for AI in the past six months, the analysis found.
No manufacturers have reported AI-induced layoffs this year or a year ago, but said they are not expecting them for the next six months.
“However, looking into the future, we expect the layoffs and reductions in recruitment plans through the use of AI will increase, especially for workers with university degrees,” the report said.
Instead of firing workers already employed, companies are likely to retrain them with AI, with almost half of both services and manufacturing companies planning to retrain technology workers in the next six months.
This may provide temporary protection for workers, but the same cannot be said for job seekers.
Some companies surveyed said they were either “employing” employment for AI or employing individuals skilled in the technology, the report said.
A new report from the ADP found that only 54,000 jobs added to the private sector in August, while a recent report from the Bureau of Labor Statistics found that the number of unemployed people exceeded the number of jobs in July. As the job market continues to slow significantly, changes in the industry may place another barrier in front of job seekers.
Approximately 12% of service companies using AI say they have hired fewer workers in the past six months, and a quarter of companies planning to use AI in the next six months plan to hire less due to technology. The analysis stated that employment pullback focused on jobs that require a university degree.
Manufacturers using AI have not cut jobs based on past implementation, but expect nearly 10% to cut for this reason over the next six months.
Meanwhile, 11% of service companies and 7% of manufacturers have reported plans to hire workers thanks to AI for the past six months, with 10-15% in both industries planning to hire more in the next six months. The analysis was “not common” – some of the companies that reported layoffs or employment cuts were also among those that actually hired new workers.
