Fed Warns AI Could Displace Workers and Widen Wealth Gap
Fed Governor Michael Barr warned that artificial intelligence could cause serious job disruptions and widen inequality if market power concentrates among investors. He noted labor shares hit a record low and urged preparation for social strains.
The United States must prepare for short-term labor disruptions driven by artificial intelligence that could displace workers and widen inequality, Fed Governor Michael Barr said on Thursday. His remarks follow midterm elections influenced by a public backlash against the rapid expansion of AI technologies. The warning precedes a public Fed forum in San Francisco on Monday hosted by a task force appointed by Fed Chairman Kevin Warsh.
