Job postings show early signs of AI automation impact (www.dallasfed.org)

Recent analysis highlights the significant early impact of generative artificial intelligence (GenAI) on the Texas job market, as revealed by the May 2026 Texas Business Outlook Survey. Approximately two-thirds of surveyed firms are now utilizing AI technologies, a considerable increase from 40% two years earlier. Post-release of ChatGPT, job postings for occupations susceptible to automation have seen a notable decline—5% immediately and approximately 8% by early 2025. This trend illustrates a shift away from hiring for roles where GenAI can perform tasks traditionally handled by humans, raising concerns about labor market disruptions, particularly for new college graduates whose employment prospects appear to be diminishing. The study employs a task-based metric developed by Anthropic to assess which tasks across various occupations are automatable by GenAI. By analyzing millions of online job postings, researchers found that existing firms are pulling back on demand for these automatable positions, with particularly high exposure seen in roles related to technology and administration. The findings suggest a shift in labor demand with potentially long-lasting effects, indicating that while GenAI boosts productivity, it also threatens job opportunities that require less experience, thus affecting new entrants to the labor market the most.