# Jaison R. Abel and coauthors argue in Liberty Street Economics that AI reshapes work [Canonical reading](https://escapemeridian.com/readings/jaison-r-abel-and-coauthors-argue-in-liberty-street-economics-c16ff262) Published September 1, 2026, Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Nick Montalbano argue in Liberty Street Economics that businesses are using AI to change work more often than to eliminate jobs. Their surveys of firms in New York and Northern New Jersey found that AI use had spread, while investment and the share of workers using it remained limited. Layoffs were uncommon in the survey responses; retraining existing workers was more common, and some firms hired workers to help use AI. The authors do not argue that AI has no costs for workers: they note that one study suggests entry-level workers may face barriers when AI substitutes for routine tasks. They describe training employees to use AI in current jobs, including instruction on checking outputs, bias, and data security. The authors conclude that, so far, firms have more often augmented workers than replaced them, while warning that patterns could shift as adoption matures. Their surveys describe regional firms, and do not establish what workforce effects will be across all workplaces. Headline and summary by Escape Meridian, prepared by Luna from the attributed source. A source check is not independent confirmation of the source’s claims. ## Questions using this source These authored EM reads cite this source. Follow their assumptions and limitations; inclusion does not imply agreement. - [Will AI take most jobs?](/questions/jobs) - [Who gets an entry point and shares the gains?](/questions/ai-entry-and-worker-gains) ## Original source Federal Reserve Bank of New York · Article Original source date: Sep 1, 2026 (2026-09-01T11:00:00.000Z). Date basis: Date supplied by the publisher’s feed. Added to Escape Meridian: 2026-11-06T05:08:26.123Z. First observed: 2026-10-23T14:32:12.296Z. Retrieved: 2026-10-23T14:33:54.547Z. - [Businesses Are Using AI to Transform Work, Not Cut Jobs](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Limits Text as retrieved on October 23, 2026; originally published September 1, 2026. The findings come from the authors’ regional business surveys of firms in the New York and Northern New Jersey region; they do not establish workforce effects across all workplaces. The authors also note that patterns could shift as adoption matures. ## Open question As AI adoption matures, will the regional pattern of retraining and limited layoffs continue, or will firms’ workforce effects shift? ## Source-stated Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Nick Montalbano report that AI use rose among surveyed regional firms. > 61 percent of service firms reported using AI this year, up from 40 percent last year and 25 percent in 2024. - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The authors report that firms’ AI investments and worker use remained limited despite broader adoption. > AI adoption in the workplace is now fairly broad but investments and worker usage remain limited. - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The authors report that layoffs in response to AI were uncommon among surveyed firms, while retraining existing workers was more common. > existing workers are much more likely to be retrained than replaced by AI. - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The authors say one study suggests AI could create barriers to workforce entry for entry-level workers doing routine tasks. > AI can substitute for routine tasks often performed by newer employees, potentially creating barriers to workforce entry - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The authors conclude that firms have so far been more likely to augment workers than replace them, while noting that patterns could change. > AI has been more likely to augment workers than replace them. That said, AI technology and its applications are still evolving rapidly, and these patterns could shift as adoption matures. - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The source was published on September 1, 2026. > September 1, 2026 > Businesses Are Using AI to Transform Work, Not Cut Jobs - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source and contributor context Federal Reserve Bank of New York · Publisher The publisher is identified here. No individual author has been inferred. ## Source media Media retrieval status: unchecked. ## Terms and references Reference context selected by Escape Meridian; separate from source evidence. Entity mentions do not establish authorship, involvement or endorsement. ## Editorial provenance Version 1. Publication ID: ccd73b2e-27e8-dcf0-0e53-b845a0214366. Prepared by openai/gpt-6-luna; grounding review by anthropic/claude-opus-5.5. Source check: uncertain by anthropic/claude-opus-5.5 on 2026-11-06T05:03:48.842Z. This checks fidelity to the source, not whether its claims are independently true. Editorial selection: accept; reasons: bridge\_screen. Observation: a7128df100f15884b6b27aa63218b6cfa67da026471b73a0ed6c43dadab9a805. Source text hash: 7ec36434625838d3aa01b2819ecb8d90e622fd2f2e8a664dd2c656116c4829dd. ## Revision and source-check history ### Version 1 — 2026-11-06T05:08:26.123Z Published September 1, 2026, Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Nick Montalbano argue in Liberty Street Economics that businesses are using AI to change work more often than to eliminate jobs. Their surveys of firms in New York and Northern New Jersey found that AI use had spread, while investment and the share of workers using it remained limited. Layoffs were uncommon in the survey responses; retraining existing workers was more common, and some firms hired workers to help use AI. The authors do not argue that AI has no costs for workers: they note that one study suggests entry-level workers may face barriers when AI substitutes for routine tasks. They describe training employees to use AI in current jobs, including instruction on checking outputs, bias, and data security. The authors conclude that, so far, firms have more often augmented workers than replaced them, while warning that patterns could shift as adoption matures. Their surveys describe regional firms, and do not establish what workforce effects will be across all workplaces. ## Questions using this source These authored EM reads cite this source. Follow their assumptions and limitations; inclusion does not imply agreement. - [Will AI take most jobs?](/questions/jobs) - [Who gets an entry point and shares the gains?](/questions/ai-entry-and-worker-gains) ## Original source Federal Reserve Bank of New York · Article Original source date: Sep 1, 2026 (2026-09-01T11:00:00.000Z). Date basis: Date supplied by the publisher’s feed. Added to Escape Meridian: 2026-11-06T05:08:26.123Z. First observed: 2026-10-23T14:32:12.296Z. Retrieved: 2026-10-23T14:33:54.547Z. - [Businesses Are Using AI to Transform Work, Not Cut Jobs](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Limits Text as retrieved on October 23, 2026; originally published September 1, 2026. The findings come from the authors’ regional business surveys of firms in the New York and Northern New Jersey region; they do not establish workforce effects across all workplaces. The authors also note that patterns could shift as adoption matures. ## Open question As AI adoption matures, will the regional pattern of retraining and limited layoffs continue, or will firms’ workforce effects shift? ## Source-stated Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Nick Montalbano report that AI use rose among surveyed regional firms. > 61 percent of service firms reported using AI this year, up from 40 percent last year and 25 percent in 2024. - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The authors report that firms’ AI investments and worker use remained limited despite broader adoption. > AI adoption in the workplace is now fairly broad but investments and worker usage remain limited. - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The authors report that layoffs in response to AI were uncommon among surveyed firms, while retraining existing workers was more common. > existing workers are much more likely to be retrained than replaced by AI. - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The authors say one study suggests AI could create barriers to workforce entry for entry-level workers doing routine tasks. > AI can substitute for routine tasks often performed by newer employees, potentially creating barriers to workforce entry - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The authors conclude that firms have so far been more likely to augment workers than replace them, while noting that patterns could change. > AI has been more likely to augment workers than replace them. That said, AI technology and its applications are still evolving rapidly, and these patterns could shift as adoption matures. - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source-stated The source was published on September 1, 2026. > September 1, 2026 > Businesses Are Using AI to Transform Work, Not Cut Jobs - [Supporting source](https://libertystreeteconomics.newyorkfed.org/2026/09/businesses-are-using-ai-to-transform-work-not-cut-jobs/) ## Source and contributor context Federal Reserve Bank of New York · Publisher The publisher is identified here. No individual author has been inferred. ## Source media Media retrieval status: unchecked. ## Terms and references Reference context selected by Escape Meridian; separate from source evidence. Entity mentions do not establish authorship, involvement or endorsement. ## Editorial provenance Version 1. Publication ID: ccd73b2e-27e8-dcf0-0e53-b845a0214366. Prepared by openai/gpt-6-luna; grounding review by anthropic/claude-opus-5.5. Source check: uncertain by anthropic/claude-opus-5.5 on 2026-11-06T05:03:48.842Z. This checks fidelity to the source, not whether its claims are independently true. Editorial selection: accept; reasons: bridge\_screen. Observation: a7128df100f15884b6b27aa63218b6cfa67da026471b73a0ed6c43dadab9a805. Source text hash: 7ec36434625838d3aa01b2819ecb8d90e622fd2f2e8a664dd2c656116c4829dd. ### uncertain — 2026-11-06T05:03:48.842Z — anthropic/claude-opus-5.5 Publication: ccd73b2e-27e8-dcf0-0e53-b845a0214366 attribution — pass: The reading correctly attributes the post to Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Nick Montalbano in the New York Fed's Liberty Street Economics, matching the byline and citation. It is a single article, not a listing. > Jaison R. Abel, Richard Deitz, Natalia Emanuel, and Nick Montalbano summary — uncertain: The summary is clear and preserves the authors' thesis, caveats and entry-level concern. However, it mentions only firms that hired more workers to use AI. It omits the source's explicit point that some firms scaled back hiring, about 15 percent of service firms versus about 13 percent hiring more. This tilts the workforce picture toward the upside. Smallest repair: add that some firms reported hiring fewer workers because of AI, while others added workers to help use it. > while some firms have scaled back hiring due to AI, others have added workers to help them use it. date — pass: The instant 2026-09-01T11:00Z corresponds to September 1, 2026, which matches the article dateline. The reading states the date at day precision. The retrieval note does not use hindsight. The later 'You may also be interested in' links are not used. The page kind is publisher-page, so no archive disclosure is needed. > September 1, 2026 Businesses Are Using AI to Transform Work, Not Cut Jobs support — pass: Each claim matches its excerpt and is attributed to the authors. The adoption figures, limited investment, rare layoffs versus retraining, the entry-level study, and the conditional conclusion are all supported. The question follows from the authors' own caveat that patterns could shift. The limitation on regional scope is supported. > Evidence from our surveys so far confirms what many studies are showing: that AI has been more likely to augment workers than replace them. media — pass: No media is selected, and no verified media candidates were supplied, so leaving the media empty is appropriate. ## Recorded references Explicit citations in public readings and public file attachments to this reading. Shared topics are not citations. Other artifact types need an explicit reference adapter. No public references recorded here yet. [Reference data (JSON)](/readings/c16ff26252860625027590ed41b03b3773be9d5b324475687ef0304e51a73af8/references.json) ## Corrections and challenges [Send a correction or an opposing source](https://escapemeridian.com/corrections/) [JSON record](https://escapemeridian.com/readings/jaison-r-abel-and-coauthors-argue-in-liberty-street-economics-c16ff262.json)