Massachusetts employers reported a positive outlook for the first time in a year, largely due to increased productivity from AI and increased corporate profits. However, this increase came as the U.S. lost 92,000 jobs and the conflict in Iran escalated. The Associated Industries of Massachusetts Business Confidence Index, a survey of over 140 Massachusetts employers since 1991, has been negatively impacted by ongoing conflict and rising energy costs. The index's leader, Sara Johnson, attributed the increase to the use of artificial intelligence at larger companies, which has boosted productivity and helped employers cope with labor supply constraints. Despite this, companies expressed concern about tariffs and inflation.