THE Federal Reserve studies the possible effects of generative artificial intelligence (AI) on productivity and inflation And the labor market, Fed chairman Jerome Powell said Tuesday (July 2nd).
Speaking at a panel discussion at the European Central BankAt the Central Banking Forum in Portugal, Powell said the massive investments being made in AI suggest “a sense that something big is happening here,” Seeking Alpha reported Tuesday.
It is too early to say whether the adoption of This technology will eliminate jobs, increase existing jobs jobs or create new ones, Powell said, according to the report.
“There’s not much a central bank can do about it,” Powell said, according to the report. “But like everybody else, we’re meeting with all the experts and asking ourselves what the effects are going to be on productivity, on inflation, on growth, and whether it’s going to have a huge impact, and if so, for whom?”
As for the Federal Reserve, it is investing “a lot of time and effort” into studying the potential effects, and while it is not using generative AI, it is “looking carefully” at other forms of AI and may use it, Powell said, according to the report.
THE International Monetary Fund (IMF) said in January that the impact of AI on job will be particularly important in advanced economies.
While about 40% of global employment is exposed to AI, 60% of jobs in advanced economies could be affected by the technology, the IMF said in a January 14 statement. blog post.
Half of these jobs could benefit from AI integration, but the other half could see key tasks which are Tasks currently performed by humans are being performed by AI applications, the post said.
These changes could lead to a decrease in demand for labor and a reduction in wages. And a drop in hiring, according to the publication.
In June, City said AI could impact more than half of all jobs in financewith 54% of these jobs having higher automation potential and an additional 12% having the potential to be augmented by AI.
Other sectors with high automation potential are insurance (46%) and energy (43%). And capital markets (40%), the bank said in a statement report.
