Federal Reserve Governor Barr said that the impact of artificial intelligence on employment depends in part on whether it will increase market concentration, become a force for widening inequality, or bring more competition and wider distribution of benefits. He pointed out that there is currently no large-scale replacement of workers, and competition among AI companies has made this technology widely available; however, there are already signs that AI is replacing the labor force in some industries, and if changes occur too fast, “the impact may be huge.” Therefore, the US should prepare for the risk of “severe short-term job market turmoil” that AI may cause. Barr also noticed that the share of labor remuneration in income is declining, and whether AI will further increase return on capital is still an open question.

Federal Reserve Governor Barr said that the impact of artificial intelligence on employment depends in part on whether it will increase market concentration, become a force for widening inequality, or bring more competition and wider distribution of benefits. He pointed out that there is currently no large-scale replacement of workers, and competition among AI companies has made this technology widely available; however, there are already signs that AI is replacing the labor force in some industries, and if changes occur too fast, “the impact may be huge.” Therefore, the US should prepare for the risk of “severe short-term job market turmoil” that AI may cause. Barr also noticed that the share of labor remuneration in income is declining, and whether AI will further increase return on capital is still an open question.