Fed Chair Powell Warns: AI Could Threaten Your Job Security

Jerome Powell, chair of the US Federal Reserve, spoke to the Senate Banking Committee about artificial intelligence (AI) and its potential impact on the economy and labor market. While he believes AI possesses “enormous capabilities” for significant change, he stated that its current effects are minimal. Powell emphasized the slow implementation phase often associated with new technologies, suggesting that meaningful economic transformations might take longer than anticipated. He noted ongoing uncertainty regarding the timing and consequences of AI’s development. Recent trends suggest a gradual acceleration of AI’s influence, as some corporations plan job cuts attributed to AI advancements. For instance, UK telecom firm BT aims to reduce its workforce by 42% by 2030, while Salesforce reports AI handling 30-50% of its tasks. Powell concluded that the Federal Reserve lacks the tools to address the social and labor issues arising from AI, indicating the need for other stakeholders to intervene proactively.

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