Fed's Cook Sees Signs of AI Improving US Labor Productivity

The use of AI in the economy presents many unanswered questions for policymakers though there is some evidence that it could improve labor productivity, according to Federal Reserve Governor Lisa Cook. From a report: "The impact of AI on the economy and monetary policy will depend on whether AI is just another app or something more profound," Cook said in remarks prepared for delivery at the National Bureau of Economic Research's conference on artificial intelligence in Toronto Friday. "Empirical evidence is still patchy, but there is work showing that generative AI improves productivity in a variety of settings." Cook, the first Black woman to serve on the Fed's board, was among central bank officials who on Wednesday voted unanimously to hold rates steady in a range of 5.25% to 5.5%. President Joe Biden named Cook as a governor on the board last year. She was endorsed for a full 14-year term in a 51-47 Senate vote earlier this month. Cook predicted that greater use of AI will be similar to the spread of computation in the workplace and could present "a difficult transition for some workers. [...] Any large change in the labor force will generate disruptions and challenges that will need to be addressed to help workers adapt and thrive."

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