Federal Reserve Vice Chair Jefferson Discusses AI's Potential Impact on U.S. Productivity and Economy
Federal Reserve Vice Chair Jefferson delivered a speech outlining the potential for artificial intelligence (AI) to substantially increase U.S. aggregate productivity, though the timing and magnitude remain uncertain. Jefferson noted that while AI adoption is growing, particularly in knowledge-intensive sectors, its impact on overall productivity statistics has been limited so far. He drew parallels to past technological breakthroughs, such as the personal computer, where significant productivity gains materialized over time as businesses reorganized operations around the new technology. Jefferson highlighted that basic and applied research are crucial drivers of productivity growth, and the current stage involves firms and workers actively experimenting with AI, with broader improvements expected as production and workflows are reorganized. The speech also touched upon the economic outlook, noting that the U.S. economy has gained momentum, expanding at a pace consistent with its potential, with resilient ...
