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Marketing & Small Business7 min read

Fed survey finds small businesses using AI are more likely to hire

A Federal Reserve survey of 5,248 small businesses found that firms using artificial intelligence are more likely to plan on hiring workers than non-users. Among AI adopters, 17 percent plan to add jobs, while 3 percent cut roles, according to the research drawn from the Fed's 2025 Small Business Credit Survey.

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Key points

  • Federal Reserve survey shows 46 percent of small employer firms use AI, with 57 percent of users still experimenting.
  • Small businesses using AI showed a net expected employment rate 18 points higher than non-adopters.
  • Seventy-six percent of AI adopters reported no change in labor costs, and 70 percent saw no change in overall sales.

Despite the positive hiring outlook, AI adoption remains largely in early stages. Forty-six percent of respondents report using AI tools, but 57 percent of those adopters describe their usage as merely experimenting, and only 7 percent have fully integrated the technology. Additionally, 76 percent of firms reported no change in labor costs, and 70 percent saw no change in sales, though 70 percent of those reporting changes cited productivity gains.

Researchers at the New York Fed noted that optimism about employment and revenue was highest among AI-using firms in fair or poor financial condition. The researchers suggested thin-staffed companies may be using AI tools as a capacity buffer to fill skill gaps they cannot afford to staff.

Full story from coffeecupai.com · via Reddit AI communitiesOpen source ↗

Feds find small businesses that use AI are more likely to hire

coffeecupai.com · 1 November 2026

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This text was published by coffeecupai.com. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗

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Federal Reserve Bank of New YorkFederal Reserve Bank of PhiladelphiaFederal Reserve Bank of San FranciscoFederal Reserve Bank of ClevelandWill AaronsAsani SarkarTheresa DunneAdam ScavetteRocio Sanchez-MoyanoNatalie Holmes

The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.

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