Businesses in the New York Fed's district have significantly increased their use of AI technology over the past year. Despite this adoption, very few companies have reported layoffs directly caused by AI. The New York Fed's findings suggest that AI is currently more likely to lead to retraining for existing employees rather than job termination. This contrasts with broader concerns about AI potentially causing widespread job losses, especially among highly-paid professionals. Investors are currently investing heavily in AI, even as the job market shows signs of softening. However, the full impact of AI on employment is expected to unfold over a much longer period. The New York Fed acknowledges that the current modest impact on jobs may not persist. Looking forward, businesses anticipate more substantial layoffs and reduced hiring as AI integration deepens. This suggests a potential shift in the employment landscape as AI technology matures within firms. The long-term consequences of AI on the job market remain a subject of ongoing observation and analysis.