Fed Closely Watches AI's Impact on Inflation, Jobs, and Financial Stability
Federal Reserve Governor Lisa D. Cook is closely monitoring the impact of artificial intelligence on inflation, employment, and financial stability. She notes that AI is a general-purpose technology with broad implications for the economy, including monetary policy and financial stability.
Cook says that investment tied to AI can contribute to price pressures, which is why the central bank is watching its effect on inflation closely. At the same time, she stresses that enthusiasm over AI's potential must be balanced with caution over privacy, bias, and other risks tied to its adoption.
The Federal Reserve is committed to responsible AI use in the financial sector. Cook says she is monitoring how the technology affects both the labor market and broader economic conditions. She notes that AI could reshape employment through a mix of job creation and job loss, requiring vigilance as workers and businesses adapt.