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Fed’s Waller Says AI Won’t Upend Jobs as Central Bank Sets Cautious, System-Wide Path

The central bank outlines problem-first deployment under tight security with human oversight.

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. REUTERS/Aly Song

Overview

  • Speaking at a Boston Fed conference, Governor Christopher Waller said he does not expect artificial intelligence to “totally upend” the U.S. job market.
  • He described AI as a tool that people will control and use to boost productivity rather than a replacement for human workers.
  • Waller said the Federal Reserve will adopt AI cautiously with clear guardrails, strong information-security controls, rigorous model validation, human accountability, and ongoing evaluation, starting from specific business needs.
  • He announced a move to unified, system-wide alignment on AI across the Federal Reserve, moving away from bank-by-bank decision making by regional Fed banks.
  • The remarks land as large-scale private investment in AI and a softer labor backdrop fuel public anxiety about job displacement, a connection analysts continue to debate.