AI Adoption Accelerating Across Sectors

The Federal Reserve Bank of New York’s regional surveys reveal rapid AI deployment across industries. Among service firms, AI adoption jumped from 25% in 2024 to 40% in 2025, with 44% expecting to use AI within the following six months. The manufacturing sector shows similar momentum: AI use rose from 16% in 2024 to 26% in 2025, with 33% of manufacturers planning adoption in the next six months.

Few Layoffs Despite Quick Rollout

Despite this accelerating adoption, the New York Fed’s regional surveys found that firms report very few AI-driven layoffs. More striking still, firms overwhelmingly intend to retrain workers rather than fire them as they adopt AI.

However, the Fed’s analysis suggests AI’s labour-market impact has more to do with changing skill requirements than eliminating jobs, at least so far. The surveys indicate that firms anticipate more reductions in hiring plans going forward, especially for college-educated workers.

Public Sentiment Lags Behind Reality

A divergence has emerged between employer behaviour and public perception. New York Fed data from October 2024 found that individuals exposed to generative AI tools appeared to be left with bleaker expectations for job availability and income inequality—a mismatch with what firms are actually reporting about retention and retraining.

Contrasting Predictions on Entry-Level Roles

Industry leaders remain divided on AI’s white-collar impact. Anthropic CEO Dario Amodei claimed 50% of entry-level tech, legal, consulting, and finance jobs could be wiped out within five years. By contrast, OpenAI CEO Sam Altman stated that AI had not claimed as many white-collar positions as he had feared, saying he was “delighted to be wrong” about the level of impact on entry-level white-collar jobs.

Real-World Signal: Dublin Content Moderation Cuts

Meanwhile, hundreds of workers at Covalen, a contractor in Sandyford, Dublin, are facing redundancy as the employees moderate content on Meta platforms—a tangible example of AI disruption in the Irish labour market.

Source: Liberty Street Economics (Federal Reserve Bank of New York)