Fed's Warsh to take stock of AI revolution as US public grows wary

Federal Reserve Chairman Kevin Warsh is set to examine the impact of artificial intelligence on the US economy during a public forum in San Francisco. While proponents of AI hail it as a revolutionary force capable of rapid economic growth and falling prices, Fed officials remain uncertain about the risks and benefits associated with the technology.

This uncertainty stems from potential job losses, the need for significant investment to realize productivity gains, and concerns about job-market impacts. Despite initial optimism about AI's disinflationary potential, Fed officials are now grappling with the possibility of increased prices due to frenetic AI development. The forum, the first of its kind for Warsh, will bring together stakeholders to discuss the technology's implications for the economy and labor market.