MNI BRIEF: Fed's Cook: AI To Spur Productivity Growth
Fed Governor Lisa Cook did not address the outlook for monetary policy.
Wider adoption of AI has the potential to accelerate U.S. and global productivity and wage growth, helping to hold down inflation in the future, Federal Reserve Governor Lisa Cook said Tuesday in remarks that did not touch directly on the economic outlook or monetary policy.
The push to use AI will also entail adjustments in the kinds of jobs that humans do, though it's unlikely entire positions will be eliminated, she said. Firms so far report plans to retain and retrain their workers to use AI, she said, citing a NY Fed survey.
"While much is still to be learned, I see growing evidence that AI is poised to have a substantial effect on U.S. and global labor markets. As firms deploy these technologies and workers discover ways to make use of them, such developments can create the conditions for greater productivity and thus higher wage growth consistent with stable prices. And adjustments in the labor market that follow as the economy adapts to technical change can affect maximum employment," she said.