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The Richmond Fed's December business surveys found that businesses were increasingly providing employees with access to artificial intelligence (AI) tools but were less likely to have incorporated AI into their operations.
The Richmond Fed's December business surveys indicate that 70 percent of Fifth District firms provided employees with AI tools, either public or company-specific. Over half (56 percent) reported using AI in their operations. Firms primarily utilized AI for tasks like drafting text or generating graphs, rather than for more extensive operational integration. A comparison with June 2024 surveys shows that firms' earlier projections for AI adoption by 2026 were largely met, aligning with reported usage at the end of 2025.
Innovation in technology, including AI, historically reshapes required skills. The December 2025 business surveys suggest that firms perceive AI primarily as a means to improve efficiency and productivity, not as a tool for reducing labor costs. There is no observed correlation between AI usage and a decrease in employment, either in the recent past or in future expectations, indicating that AI is more likely to augment human labor rather than replace it.
Approximately half of the surveyed respondents offering AI tools utilize them for specific tasks such as analyzing quantitative and qualitative data, drafting documents, generating visuals, or summarizing notes. However, the adoption of AI for broader operational changes that could yield significant, lasting productivity gains—like improving worker safety, tracking productivity, optimizing inventory, or assessing and tracking risk—is less prevalent among these firms.
For AI technology to truly boost U.S. economic productivity, it needs to be widely adopted across various sectors and integrated into both specific tasks and overarching business processes, which is a gradual evolution. While many Fifth District firms have started providing AI tools for employees to handle particular tasks, the technology is not yet deeply embedded in their core business operations. Despite this, survey responses suggest that actual AI adoption by 2026 has exceeded expectations set in 2024, with firms anticipating continued expansion of AI use within their organizations and industries.