<p>AI’S IMPACT ON JOBS REMAINS LIMITED, SAYS NEW YORK FED<p></p>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.</p>