Powell: AI is a "partial cause" of worsening US employment

AI Summary
Federal Reserve Chairman Jerome Powell stated that artificial intelligence is having some impact on US employment, but it is not the main cause. He expressed concern that the current AI wave could be more severe than past technological revolutions for the labor market, potentially leading to an imbalance in job numbers, and that tools to address these impacts are still insufficient.
Golden Finance reports that is artificial intelligence harming US employment?
The answer from Federal Reserve Chairman Jerome Powell is: a little.
In the press conference, Powell said that AI is a "partial cause" of worsening unemployment, which is also one of the reasons behind the Federal Reserve's second rate cut in two months.
However, he quickly added that AI is currently "not the main reason, and we also do not know if it will be in the future."
Although Powell cannot determine the long-term impact of AI on the labor market, he admits that this wave of AI might be worse than the technological revolutions of the past 200 years.
While past waves of technology eliminated some jobs, they also created enough new ones, "ultimately always balancing the number of jobs."
But in the era of generative AI, "it might be different," he said.
If that is the case, "we don't have enough tools to cope with these social and labor market impacts."