Nearly Half of Firms Using AI Say Goal Is to Cut Staffing Costs

Brian Delk, Bloomberg News

, Richmond Federal Reserve

(Bloomberg) -- Workers fearing that their employers could use artificial intelligence to replace them might be right, according to data in a Federal Reserve Bank of Richmond report.

In a survey conducted earlier this month of firms using AI since early 2022 in the Richmond region, 45% said they were automating tasks to reduce staffing and labor costs.

The survey also found that almost all the firms are using automation technology to increase output. In a speech on Friday, Richmond Fed President Thomas Barkin said, “we may well also be seeing a move up in productivity, driven perhaps by automation or even AI.”

But workers can take comfort from Federal Reserve Bank of Dallas data, which showed that among the nearly 40% of Texas firms now using AI, the impact on employment so far has been minimal.

And AI has not yet taken over all workplaces, the Richmond Fed survey found. Only 46% of all the firms said they had added technology to automate what had been employees’ tasks since January 2022. AI adaptation was more common among manufacturing firms, with 53% of them using the technology, than service sector companies, which reported just 43%.

--With assistance from Cecile Daurat.