Powell: AI is a "partial cause" of worsening employment in the US

Gold Finance reports that is artificial intelligence hurting US employment? Federal Reserve Chairman Jerome Powell’s answer is: a little. During the press conference, Powell stated that AI is a “partial cause” of worsening unemployment rates, which is also one of the reasons behind the Fed’s second interest rate cut in two months. However, he quickly added that AI is currently “not the main reason, and we also don’t know if it will be in the future.” While Powell cannot determine the long-term impact of AI on the labor market, he acknowledged that the current wave of AI may be worse than technological revolutions of the past 200 years. Although past waves of technology eliminated some jobs, they also created enough new ones, “ultimately always balancing the number of jobs.” But the era of generative AI “may be different,” he said. If so, “we don’t have enough tools to deal with these social and labor market impacts.”