AI, which FED Governor Barr sees as a transformative general‑purpose technology, is likely to boost long‑run productivity but brings significant near‑term risks for workers, inequality, and inflation, so he argues monetary policy should remain cautious while society manages potential labor dislocation. (

"In conclusion, I expect that AI will have a transformative effect on the economy and affect a large share of workers in ways that will challenge the ability of the private and public sectors to accommodate this adjustment. In the longer run, I expect AI will boost productivity and living standards, and it may even lead to new discoveries. Society will need to be nimble and bold to reduce the pain of short-term dislocations for workers and to ensure that the benefits are broadly shared. Widespread AI adoption will very likely lead to dramatic and sometimes difficult changes in the way many of us work and live, but the long-term benefits could be even more dramatic."

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