A Federal Reserve survey found that nearly half of U.S. companies implementing artificial intelligence (AI) since early 2022 are doing so to reduce hiring and labor costs.
The survey, conducted earlier this month and reported by Bloomberg, showed that 45% of companies using artificial intelligence in the Richmond area in the United States are working to automate tasks previously performed by employees to reduce expenses.
Increased productivity and sector changes
The Fed survey also highlighted that nearly all companies using AI technology aim to boost their productivity.
“We may also see a rise in productivity, driven perhaps by automation or even artificial intelligence,” Richmond Federal Reserve Bank President Thomas Barkin noted in a speech on Friday.
This, according to Bloomberg, indicates a dual focus on reducing costs and enhancing productivity among companies adopting artificial intelligence.
The survey found that AI is more prevalent in the manufacturing sector than in services. Specifically, 53% of manufacturing companies reported using AI to automate tasks, while only 43% of service sector companies did the same, the agency reported.
Overall, 46% of all companies surveyed have integrated AI technology since January 2022.
In contrast to the findings in the Richmond area, data from the Federal Reserve Bank of Dallas showed that of the nearly 40% of Texas companies currently using AI, the impact on employment has been minimal.
This suggests that although AI is being used to automate tasks, it has not yet led to widespread job displacement in all regions.
