Special Questions

Texas Manufacturing Outlook Survey

Data were collected May 13–21, and 78 Texas manufacturers responded to the survey.

NOTE: 71 responses.

The following prompt was given to those answering yes in question 1.

• We are trying to find ways to reduce costs as we expect prices will increase. We are looking at ways to use AI and automate labor and processes more than ever before.

• A number of applications are in trial. It’s difficult to know what will be effective.

• There are AI tools that we have become aware of that could potentially assist us in responding to increased tariffs and other costs.

• We will need to explore any and all cost savings opportunities (efficiency gains).
• It’s not so much a tariff issue; it’s mostly because we cannot get enough labor.

• We will continue to strive to implement automation, but this is not primarily driven by tariffs. Tariffs may play a small role, but the emphasis would be on increasing efficiency and the reduction or elimination of repetitive motion.
• Tariffs have affected our hardware costs, and we were already implementing AI to increase productivity.

• We will explore automation to lower labor costs, since material input costs are increasing. 

• We are leveraging our enterprise resource planning technology more and had to hire a production planning specialist. It is very expensive.
• We are looking for ways to increase the types of products produced using more automated machinery already owned to reduce the need for more employees.

For the remaining questions, respondents were provided the following definitions: Traditional AI relies on explicit programming to execute specific tasks. Examples include search algorithms and recommendations or predictions based on past trends. These AIs have been trained to follow given rules and perform tasks, but they don’t create anything new. Generative AI is distinct from traditional AI in that it autonomously generates new content. Examples include written content creation like ChatGPT, question answering like sales or customer service chatbots, and enhanced code and/or software development.

NOTE: 77 responses.

NOTES: 16 responses. This question was only posed to respondents who said in question 2 they are planning to use AI in the next 12 months.

NOTES: 19 responses. This question was only posed to respondents who said in question 2 they are using generative AI. Respondents selecting "Other" were asked to explain, and the most common tools cited were Claude, Grok and internally created tools.

NOTES: 27 responses. This question was only posed to respondents who said in question 2/2a they currently use generative AI or are planning to use it in the next 12 months.

NOTES: This question was only posed to respondents who said in question 2/2a they currently use generative AI or are planning to use it in the next 12 months. Respondents currently using generative AI were asked, "How has the use of generative AI affected employment at your firm?" and response choices were in past tense. Respondents planning to use generative AI in the next 12 months were asked, "How do you expect the use of generative AI to affect employment at your firm?" and response choices were in future tense. Results are displayed separately as well as combined.

NOTES: This question was only posed to respondents who said in question 2/2a they currently use generative AI or are planning to use it in the next 12 months. Respondents currently using generative AI were asked, "What benefits has your firm experienced from using generative AI?" and response choices were in past tense. Respondents planning to use generative AI in the next 12 months were asked, "What benefits does your firm expect to experience from using generative AI?" and response choices were in future tense. Results are displayed separately as well as combined.

NOTE: 75 responses.

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Texas Service Sector Outlook Survey

Data were collected May 13–21, and 248 Texas business executives responded to the survey.

NOTE: 192 responses.

The following prompt was given to those answering yes in question 1.

• Lower customer support costs and hopefully improved underwriting algorithms.
• High tariffs continue to be a concern. Business slows down as tariffs continue to be negotiated.

• In areas where the risk-reward is worthwhile and compliant with regulatory needs.
• There is an impetus to explore new or other cost-cutting measures.
• That is assuming there are actually tariffs. If so, we will see the cost of delivering new buildings increase, and we will see changes in demand for our logistics business.  However, our house view is that the overall impact of tariffs will be muted. We are more concerned with the erosion of trust and confidence in the U.S. that could result from increased political instability.
• We are exploring options.

• It's always a good time to take advantage of automation.

• Seeking more efficiency and better use of technology.

• Crisis always brings new innovation and changes how we look at our business. We will seek equipment that could replace employees or reduce the need for labor and look to change our model.

• This needs to be done regardless of higher tariffs.

• Elimination of other operating costs via automation is the easiest way to compensate for margin erosion for those that have the capital to do so.

• We are a tech firm and we're all over AI. The privacy and General Data Protection Regulation constraints are a huge blocker.
• Our prices for equipment and supplies have increased due to tariffs. No matter what, we are embracing AI as it enables us to accelerate the delivery of our services and products to our clients.
• Currently using AI for meeting transcription, meeting prep and follow-up. Tariffs no doubt impact the stock and bond markets. We are primarily money managers, and this has created uncertainty in the markets, creating extra work and lower fee revenue.
• Looking forward to general availability and lower prices of robots for simple tasks.
• Automate tasks.
• The IT business is dependent on the growth of our customers. As their growth and profits decline, so will their spending on IT.
• I expect a 5 percent rise in construction pricing, making it that much harder to finance projects. I'm also concerned about the rising cost of insurance.

• More technology options in a push for higher productivity.

• We are incorporating summaries for our vendors and supporters. These sorts of routine communications can be better detailed and more timely.
• Not directly related to a specific tariff, but part of the overall plan to offset cost increases.

For the remaining questions, respondents were provided the following definitions: Traditional AI relies on explicit programming to execute specific tasks. Examples include search algorithms and recommendations or predictions based on past trends. These AIs have been trained to follow given rules and perform tasks, but they don’t create anything new. Generative AI is distinct from traditional AI in that it autonomously generates new content. Examples include written content creation like ChatGPT, question answering like sales or customer service chatbots, and enhanced code and/or software development.

NOTE: 241 responses.

NOTES: 45 responses. This question was only posed to respondents who said in question 2 they are planning to use AI in the next 12 months.

NOTES: 95 responses. This question was only posed to respondents who said in question 2 they are using generative AI. Respondents selecting "Other" were asked to explain, and the most common tools cited were Claude, Grok and internally created tools.

NOTES: 122 responses. This question was only posed to respondents who said in question 2/2a they currently use generative AI or are planning to use it in the next 12 months.

NOTES: This question was only posed to respondents who said in question 2/2a they currently use generative AI or are planning to use it in the next 12 months. Respondents currently using generative AI were asked, "How has the use of generative AI affected employment at your firm?" and response choices were in past tense. Respondents planning to use generative AI in the next 12 months were asked, "How do you expect the use of generative AI to affect employment at your firm?" and response choices were in future tense. Results are displayed separately as well as combined.

NOTES: This question was only posed to respondents who said in question 2/2a they currently use generative AI or are planning to use it in the next 12 months. Respondents currently using generative AI were asked, "What benefits has your firm experienced from using generative AI?" and response choices were in past tense. Respondents planning to use generative AI in the next 12 months were asked, "What benefits does your firm expect to experience from using generative AI?" and response choices were in future tense. Results are displayed separately as well as combined.

NOTE: 238 responses.

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Texas Retail Outlook Survey

Data were collected May 13–21, and 46 Texas retailers responded to the survey.

NOTE: 42 responses.

The following prompt was given to those answering yes in question 1.

• We are using AI to help speed up tasks in administration functions.

• We want to embrace AI and use it in whatever way we can to improve our business model.         

• We are training to better understand AI and how to use it for inventory management and purchasing.

• Less workers.

• For estimating.

• Looking to AI for areas that can be optimized.

• Our accounting and IT team will begin to use ChatGPT and CoPilot to analyze past data to guide future decisions.

For the remaining questions, respondents were provided the following definitions: Traditional AI relies on explicit programming to execute specific tasks. Examples include search algorithms and recommendations or predictions based on past trends. These AIs have been trained to follow given rules and perform tasks, but they don’t create anything new. Generative AI is distinct from traditional AI in that it autonomously generates new content. Examples include written content creation like ChatGPT, question answering like sales or customer service chatbots, and enhanced code and/or software development.

NOTE: 44 responses.

NOTES: 11 responses. This question was only posed to respondents who said in question 2 they are planning to use AI in the next 12 months.

NOTES: 12 responses. This question was only posed to respondents who said in question 2 they are using generative AI. Respondents selecting "Other" were asked to explain, and the most common tools cited were Claude, Grok and internally created tools.

NOTES: 15 responses. This question was only posed to respondents who said in question 2/2a they currently use generative AI or are planning to use it in the next 12 months.

NOTES: This question was only posed to respondents who said in question 2/2a they currently use generative AI or are planning to use it in the next 12 months. Respondents currently using generative AI were asked, "How has the use of generative AI affected employment at your firm?" and response choices were in past tense. Respondents planning to use generative AI in the next 12 months were asked, "How do you expect the use of generative AI to affect employment at your firm?" and response choices were in future tense. Results are displayed separately as well as combined.

NOTES: This question was only posed to respondents who said in question 2/2a they currently use generative AI or are planning to use it in the next 12 months. Respondents currently using generative AI were asked, "What benefits has your firm experienced from using generative AI?" and response choices were in past tense. Respondents planning to use generative AI in the next 12 months were asked, "What benefits does your firm expect to experience from using generative AI?" and response choices were in future tense. Results are displayed separately as well as combined.

NOTE: 44 responses.

Survey respondents were given the opportunity to also provide comments, which can be found in the Comments tab above.

Special Questions Comments

Survey participants are given the opportunity to submit comments. Some comments have been edited for grammar and clarity.

• We rely on organic Google search for a lot of new customer leads. As more people use embedded AI [artificial intelligence] tools and search summaries, we are concerned that organic search results are pushed down the page and will be devalued.

• We are experiencing delays in starting and receiving new orders.

• I am older, 72 years. The changes being made today using AI are being adopted too quickly without fully understanding the long-term impact on the current workforce.

• We're excited about AI, both traditional and generative. We will be utilizing it more and more each day as time goes on. It's a demand we have levied upon our team and will continue to encourage.

• AI is still so new and requires human oversight still. It cannot be fully relied on yet.

• Discerning what’s helpful and what’s not—conflicting confusion.

• AI [artificial intelligence] helps with marketing wording for real estate.

• AI is accelerating the quality of services and tasks we perform with its capabilities to traverse and synthesize succinct responses from a wide range of data sources.
• We leaned in early to AI to bring it into our business. As a whole it has given us a competitive advantage, increased our productivity and helped the bottom line.
• Haven't we all seen the movies or read the books where AI promises to improve quality of life only to see it go horribly wrong? Just sayin’ ...
• AI will make the U.S. stronger, as the new tool can do computer coding without bugs (codes are needed everywhere) and also can find cures for hard problems like finding a cure for cancer.
• Misinformation and bias are top concerns about using generative AI. Most users can be insidiously manipulated. How can we verify what is true? How will AI earn our trust?

• I view AI now as the next big leap in personal productivity, akin to the smartphone or the internet. We are using it any way we can and view it as a competitive advantage versus larger, slower adopters of technology. I predict that generative AI will be extremely disruptive to white-collar entry-level jobs (e.g., paralegals, marketing copywriters, bookkeepers, financial analysts, etc.)

• I think generative AI growth will reduce our workforce. There are processes that can be replaced with AI. We are watching this very intently to try and see where the technology is going.

• The more we rely on AI the less security we have. We have already seen how AI can misinform the public for bad and for good. So, I have pros and cons but lean more toward bad.

• There is no doubt that everything a person does with AI is recorded. But it's for the greater good of AI development, so we should have no problem contributing.

• Many of our data services are outsourced. We have less vendors in an attempt to reduce exposure to risk and extend our dependence on more sophisticated systems with the ability to provide innovation for managing data.
• The issue with whatever "AI" is used will be its impact on staffing. The labels (generative or whatever) are subject to change as the technology evolves. Remember word processing, Wang, Word and all that? How many middle-management jobs were eliminated by spreadsheet programs?

• Specific concerns about AI include patent and trademark infringement, copying and distributing proprietary code and processes. Our customers are greatly concerned about companies like ours using generative AI in our software services for them, particularly due to generative AI's propensity for biases.

• While use of AI has currently shifted the type of personnel we need, we do anticipate that it will reduce the overall count of personnel we need over time.
• We are in the early stages, but there is much potential for enhancing software products sold and in managing basic business efficiency and productivity.

• We're going to go very slow on the AI journey.

• If you work behind a screen, AI is going to render you much less valuable. It will be great for those anxious to avoid human interaction but will eventually backfire on society as increasing numbers retreat to a mindless world of subsistence where there is little to distract them from their screens. Those who manage to avoid this fate, learn practical trade skills and are willing to do physical work are going to be the winners. AI isn't going to fix toilets or build houses anytime soon. The folks who can and will do this will be worth their weight in gold. Already, we have maintenance guys who make more than the managers they work for. AI may replace our brains, but it's not going to replace our bodies or our physical needs.

• We have no experience with AI at present (other than searches). We are waiting to see if there are direct applications to our industry