AI and the Labor Market: Will Firms Hire, Fire, or Retrain?

Jaison Abel, Richard Deitz, Natalia Emanuel and Benjamin Hyman

No 20240904b, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: The rapid rise in Artificial Intelligence (AI) has the potential to dramatically change the labor market, and indeed possibly even the nature of work itself. However, how firms are adjusting their workforces to accommodate this emerging technology is not yet clear. Our August regional business surveys asked manufacturing and service firms special topical questions about their use of AI, and how it is changing their workforces. Most firms that report expected AI use in the next six months plan to retrain their workforces, with far fewer reporting adjustments to planned headcounts.

Keywords: Artificial intelligence; business surveys; labor market; job training (search for similar items in EconPapers)
JEL-codes: J2 J3 (search for similar items in EconPapers)
Date: 2024-09-04
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