The advancement of artificial intelligence (AI) has not only led to widespread layoffs but has also slowed the pace of new hiring. Weak recruitment conditions combined with ongoing job cuts are expected to persist in the labor market, making it increasingly difficult for job seekers to find new employment opportunities.

Nevertheless, the slowdown in hiring is said to be less pronounced among smaller companies.

“AI is having a real impact on large corporations,” said Minneapolis Federal Reserve President Neel Kashkari, as quoted by CNBC International on Saturday (January 17, 2026).

The use of AI began to accelerate following the launch of OpenAI’s ChatGPT in 2022, which quickly gained widespread popularity. Since then, many companies have adopted the technology across their operations and workforce.

However, the rapid expansion of AI has also raised various concerns, ranging from threats to employment and productivity-related usage to the risk of misguided investments in the technology.

Despite these concerns, Kashkari noted that a growing number of businesses are now seeing tangible returns from their AI investments, including companies that were initially skeptical.

“There’s no question that some investments turned out to be mistakes. But there are many anecdotes of businesses using AI and experiencing real productivity gains,” he explained.

He added that companies he has spoken with—many of which were doubtful two years ago—are now saying they are genuinely using AI in their operations.