Warsh Sees AI-Driven Economic Growth for US
Federal Reserve Chair Kevin Warsh has expressed optimism about artificial intelligence's impact on the US economy. In a recent conference, he described AI as a 'paradigm shift' that would likely make the United States a 'big winner in the medium-term.'
Warsh believes that we are still in the early stages of this revolution, with the first or second inning just beginning. He pointed to business investment in AI as a key driver of recent US economic growth, accounting for roughly two-thirds of gross domestic product growth over the first half of 2025.
Warsh's views differ from some analysts who have previously stated that AI has failed to achieve gains on a scale near its immense costs. However, he expects a shift in sentiment among businesses regarding the impact of AI, predicting that business surveys will soon be saying quite the opposite of their current 'no big deal' attitudes.