Fed's Barr (voter) says the US should be prepared for the risk of “serious short-term disruptions” in the job market due to AI; declining share of income going to labour, and says it is an open question whether AI further boosts returns to capital
ORIGINAL · NewsquawkFed's Barr (voter) says the US should be prepared for the risk of “serious short-term disruptions” in the job market due to AI; declining share of income going to labour, and says it is an open question whether AI further boosts returns to capitalRead originalHide original
There are signs AI is a substitute for labour in some sectors, and if change happens fast, “dislocations might be large”. Little displacement of workers so far, with competition among AI firms allowing broad access to the technology. Outcome depends in part on whether AI leads to market concentration, a force for widening inequality, or more competition and more widely distributed gains.
Barr warned of potentially large AI-related job-market dislocations; recent reports describe limited displacement so far and identify the Fed's December 8-9 meeting as the next policy date.
News detail
There are signs AI is a substitute for labour in some sectors, and if change happens fast, “dislocations might be large”. Little displacement of workers so far, with competition among AI firms allowing broad access to the technology. Outcome depends in part on whether AI leads to market concentration, a force for widening inequality, or more competition and more widely distributed gains.
What do investors think?
StockNow uses AI to translate and analyze information and does not guarantee its accuracy or completeness.