AI Adoption Accelerates Across US Industries

Artificial intelligence is spreading rapidly through American businesses. According to the Federal Reserve Bank of New York’s Regional Business Surveys, the share of service firms using AI jumped from 25% in 2024 to 40% in 2025, with expectations to reach 44% within the following six months. Manufacturers showed similar momentum, rising from 16% in 2024 to 26% in 2025, with projections reaching 33% in the six months ahead.

Few Layoffs So Far, But Hiring Plans May Shift

Despite rapid adoption, the New York Fed’s regional survey data found that firms report very few AI-driven layoffs. However, the picture is more complex when looking ahead. Firms do anticipate more reductions in hiring plans going forward — especially for college-educated workers — as AI adoption rises. Even so, survey data indicate that firms overwhelmingly intend to retrain workers rather than fire them as they adopt AI.

Ireland and Europe: Strong Employment Growth Despite AI Expansion

Across the Atlantic, European research paints an optimistic picture. John Hurley, senior research manager at Eurofound, stated that AI currently appears more likely to be a net contributor to employment in Europe than a source of job losses.

Eurofound research found that, rather than triggering mass lay-offs, companies are mainly adjusting to AI through job redesign, organisational changes, and internal mobility. In Ireland specifically, employment growth remains strong in AI-exposed sectors including information and communication, as well as professional, scientific, and technical activities. Ireland’s large tech firms, despite recent job-reduction plans, remain active recruiters and employ more people now than they did pre-Covid, according to Eurofound’s European Restructuring Monitor.

That said, a joint report by the ESRI and the Irish Department of Finance found that AI adoption among Irish firms is likely to lead to job losses concentrated among highly educated workers. Additionally, TikTok cited AI as the reason for reducing its need for human content moderators at its operations in Berlin and Amsterdam.

AI Skills Command Premium Pay and Explosive Growth

PwC’s 2026 AI Jobs Barometer reveals a widening divide between AI-capable and traditional firms. Companies most able to use AI are seeing 52% headcount growth compared to 36% at the least AI-exposed companies. ‘Superstar companies’ most exposed to AI achieved labour productivity gains of 163%, significantly outpacing other businesses.

Demand for specialized AI expertise is outpacing overall employment growth by a significant margin. Jobs requiring specific AI skills — such as prompt engineering or machine learning — are growing roughly eight times as fast as the overall jobs market. In Ireland, roles which include AI-related skills tend to be associated with higher advertised salaries, particularly in technology and financial services.

Source: Liberty Street Economics (Federal Reserve Bank of New York)