Fed Chair Kevin Warsh Closely Monitoring Artificial Intelligence Developments
The Federal Reserve plans to have a report prepared by the end of the year to examine the economic impacts of artificial intelligence and the risks to employment.
Federal Reserve Chair Kevin Warsh announced that the central bank is closely monitoring rapidly developing artificial intelligence models and their supply-demand impacts on the economy.
The Central Bank's Approach to Artificial Intelligence
Federal Reserve Chair Kevin Warsh stated that the central bank attaches great importance to developments in the field of artificial intelligence. Warsh expressed that they are closely interested in how artificial intelligence will affect both the supply and demand sides of the economy.
Preparation of Employment and Economy Report
According to a report published by Apollo Global Management in July, approximately 5.8 million American workers are employed in high-exposure areas at risk of displacement due to artificial intelligence. Warsh expects the working group examining the impact of artificial intelligence on the economy to submit a report to him by the end of the year.
Policy and Regulation Debates
Stating that policy decisions will be made by other branches of the government, Warsh said he would leave such policy decisions out of his remit. Democratic and Republican lawmakers have voiced concerns regarding artificial intelligence models following warnings from researchers.
Congressional Process and Regulatory Challenges
While lawmakers from both chambers of Congress have introduced various bills to regulate artificial intelligence, Senator Rick Scott stated that in an environment where Congress cannot even pass a budget, it cannot produce a great law on artificial intelligence.
US and China Competition
President Trump argued that the US must lead in the race with China, stating that artificial intelligence technology should not be over-regulated. Trump expressed that the federal government already possesses tremendous punitive and regulatory power over artificial intelligence companies.