Artificial intelligence is already woven into everyday business in Texas, but it is not exactly sparking a hiring boom. A new survey from the Federal Reserve Bank of Dallas finds roughly two-thirds of Texas firms are now using AI, yet most executives say it has not changed how many people they employ. A smaller but notable share report that AI is trimming their need for workers, hinting at quieter shifts beneath the surface as companies pour money into software instead of staffing.
Survey Snapshot: Two-Thirds Of Firms Are Using AI
According to the Federal Reserve Bank of Dallas, data collected May 12–20 from 313 Texas executives show 66% of firms are using AI to at least some degree. Among firms that use the technology, 10% said AI has decreased their need for workers, while 76% reported no impact on headcount. The responses come from a Texas Business Outlook Surveys supplemental module the Dallas Fed published in late May.
How Deep The AI Shift Really Goes
The survey suggests use is not just experimental for many companies. Among firms that have adopted AI, 63% said the tools are now part of core processes or operations. At the same time, 52% said AI is used regularly by only a small share of employees, while 21% reported that many employees use AI tools on a regular basis.
Adoption has climbed quickly from the first Dallas Fed question on AI in April 2024, according to reporting by Dallas News, which summarized the late May release.
What AI Is Doing On The Job
Executives pointed to a wide range of tasks that have been handed off to algorithms and software. Those include marketing work, coding, graphic design, customer support, order processing, accounts and some engineering tasks. Firms also overwhelmingly reported productivity gains for employees who use AI tools, according to the Dallas Fed's special-questions results, even in cases where the size of the workforce has not changed.
Economists Eye Automation Versus Augmentation
Emily Kerr, a senior business economist at the Dallas Fed, told Dallas News that the picture is not straightforward. "I think the big question in terms of the labor market is, 'Is AI automating or augmenting workers?'" she said.
Kerr and other Fed researchers cautioned that the survey responses are subjective and do not necessarily prove that companies have carried out layoffs linked directly to AI.
Lawmakers Want Receipts On AI-Linked Job Changes
The survey lands as federal lawmakers press for clearer data on how AI is affecting workers. Senators Mark Warner and Josh Hawley have introduced legislation that would require companies and federal agencies to report AI-related job changes to the Department of Labor, as detailed by Axios. Supporters say the proposal would give policymakers better information about layoffs, retraining and new hires tied to automation.
What It All Means For Texas Workers
For workers, the near-term outlook is mixed. Most firms say AI has not reduced headcount so far, but a notable share expect staffing needs to decline over the medium term, which increases demand for reskilling. Community colleges, workforce boards and employers may face pressure to expand retraining programs if AI adoption keeps climbing across both services and manufacturing.
The Dallas Fed snapshot shows AI is already reshaping workflows in Texas offices, factories and back offices. Whether that shift results in broad job losses or productivity gains that create new roles will depend on how individual firms choose to use the technology, how policymakers respond and how quickly workers can adapt to the new tools.
