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

Digest AI · Marketing & Small Business · published 2026-11-01T23:43:03Z

Canonical: https://digestai.news/story/fed-survey-finds-small-businesses-using-ai-are-more-likely-to-hire

## Summary

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.

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.

## 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.

## Why it matters

The survey provides empirical data directly contrasting fears of widespread, immediate AI-driven job loss in small businesses, showing tools are largely used for clerical support and capacity expansion.

## Sources

1. [Feds find small businesses that use AI are more likely to hire](https://coffeecupai.com/blog/fed-asked-5248-small-businesses-about-ai) (coffeecupai.com, 2026-11-01)

## Cite

Digest AI, "Fed survey finds small businesses using AI are more likely to hire", 1 November 2026, https://digestai.news/story/fed-survey-finds-small-businesses-using-ai-are-more-likely-to-hire

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