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

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.”

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