Has Generative Artificial Intelligence Adoption Impacted Labor Demand at Third District Firms?
This short Philadelphia Fed write-up is useful because it gets specific about adoption and labor impacts, instead of staying at the “AI will automate everything” level. In a late-October 2025 survey of 95 Third District firms (Delaware, southern New Jersey, and eastern/central Pennsylvania), about three-quarters reported using some form of AI, and about half said they’re using generative AI.
What firms aren’t reporting (yet) is a big headcount shock. Among generative-AI adopters, ~70% said their need for workers didn’t change, and another ~17% said AI changed the type of workers they need but not the number. Only ~8% said generative AI decreased their need for workers, and ~2% said it increased. The authors’ read is that, so far, companies are mostly using these tools to augment productivity and upskill rather than replace roles — while flagging that impacts may still show up unevenly (especially for early-career roles in AI-exposed occupations) and that more research is needed on which job categories shift first.