A New York Fed survey indicates that firms using AI are increasingly retraining staff—up to 47% plan retraining within six months—but layoffs are also expected to rise. Service sector companies anticipate more job cuts and reduced hiring, especially affecting college degree roles and recent graduates. Manufacturing firms show mixed trends, hiring more even as some cutbacks are planned. The findings depict a complex impact of AI on employment, with reskilling efforts counterbalanced by labor displacement risks.