Survey: Tennessee Employers Using AI to “Complement” Not “Replace” Workers
The Winter 2026 Tennessee Business Leaders Survey, conducted by the University of Tennessee, Knoxville, found that the vast majority of businesses in the state are embracing AI as a supportive tool. Approximately 63% of respondents stated they use AI in ways that do not affect their total headcount, while only 10% reported having fewer employees due to the technology.
Despite this positive integration, the survey highlighted a growing “skills gap.” Over half of East Tennessee business leaders specifically cited a lack of technical skills as a top concern when hiring. Business leaders expressed worry about how the “disruptive” nature of AI is making it difficult for the current labor force to keep pace with changing requirements.
Interestingly, regional data shows that East Tennessee is experiencing more difficulty in retaining employees compared to Middle Tennessee. The survey notes that while AI is creating many questions about the future of work, Tennessee employers are generally optimistic, with over two-thirds expecting the state’s economy to outperform the national average.
Why this matters for The Knoxville AI Hub
For East Tennessee workers and students, this highlights a massive opportunity and a challenge: while jobs are not being “stolen” by AI in large numbers, the requirements for those jobs are shifting toward AI literacy. This underscores the need for local workforce development and adult learning programs to focus on “technical skills” to help Knoxville residents remain competitive as regional businesses continue to modernize their workflows.
For more detailed information, you can read the full story here: Tennessee Employers Use AI To Complement Workers – News
