{
  "id": 4849502,
  "title": "Businesses Are Using AI to Transform Work, Not Cut Jobs",
  "url": "https://urgent.news/2026/09/01/businesses-are-using-ai-to-transform-work-not-cut-jobs",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-01T11:00:00.000Z",
  "source": {
    "name": "Liberty Street Economics",
    "slug": "liberty-street-economics",
    "url": "https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/"
  },
  "original_language": "en",
  "account": "Over the past three years, a growing number of regional businesses have embraced artificial intelligence (AI), according to a recent survey by the Federal Reserve Bank of New York. In the New York and Northern New Jersey region, more than 60 percent of service firms and approximately half of manufacturers now utilize AI in their operations. This represents a significant increase from previous years, when only 40 percent of service firms and 26 percent of manufacturers reported using AI.\n\nDespite the widespread adoption of AI, businesses are generally cautious with their investments. Three-quarters of service firms and over 90 percent of manufacturers consider their AI investments to be minimal or modest. Many firms are utilizing cost-effective free AI tools, rather than investing significant resources into more advanced technology. Additionally, only about 5 percent of service firms view AI adoption as a major strategic investment.\n\nWhile AI adoption remains concentrated among a small share of workers within firms, the median share of workers using AI tools is relatively low, at 17 percent for service firms and 7 percent for manufacturers. This indicates that AI is becoming more prevalent in the workplace, but its impact on individual employees is still limited.\n\nSeveral factors have deterred some businesses from fully embracing AI. Cost is not the primary concern, as it is among the least cited reasons by non-adopters. Instead, many firms indicate that the nature of their work does not lend itself well to AI integration, or that the current technology is not yet advanced enough to provide tangible benefits. Data privacy, security, and confidentiality are also significant concerns for non-adopters, as are issues related to the accuracy and reliability of AI systems. Furthermore, a significant portion of non-adopters lack the technical expertise to effectively implement AI in their business processes.",
  "summary": "The ongoing advancement and adoption of artificial intelligence continues to raise concerns about widespread job losses. Over the past three years, our regional business surveys have asked firms about their AI adoption and its effects on their workforces. This year, we found that AI use among regional businesses has continued to rise sharply, with more than 60 percent of service firms and about…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}