AI’S IMPACT ON JOBS REMAINS LIMITED, SAYS NEW YORK FED AI adoption is rising among New York Fed–surveyed firms but has had little effect on employment so far. Over the past year, 40% of service firms and 26% of manufacturers used AI, up from 25% and 16%, respectively. Most firms report retraining employees rather than layoffs. Looking ahead, nearly half of service firms and one-third of manufacturers plan to adopt AI soon. The Fed cautioned, however, that future integration could lead to more layoffs and reduced hiring, especially in higher-paid roles.(*Walter Bloomberg)