One big problem with artificial intelligence is nobody knows where it will lead, Jerome Powell said.
Federal Reserve Chair Jerome Powell appeared on CBS’ 60 Minutes this week and expressed concerns over artificial intelligence’s impact on business employment.
Asked about the research the Federal Reserve is doing on AI, Powell said the Fed is studying artificial intelligence “like everyone else” with an eye on what it will mean for the U.S. labor market.
“The question, in the near term, is, ‘Will artificial intelligence…be employment enabling and employment enhancing, making workers more productive and hence paid better, or will it replace workers? Or will it do some of each?'” he told CBS.
Powell also noted the Fed is analyzing how AI will impact the U.S. economy, calling the technology “extraordinary.”
“What will be the effects on productivity, employment, and the distribution of wealth and income?” he noted. “Those are the things we’re thinking about.”
Companies Need To Invest In AI to Fight Fraud
Powell also touched upon emerging technologies like AI making it easier for fraudsters to commit cybercrime.
“The attackers are always improving their game, and the defenders have to be improving their game all the time,” he said. “You’ve got to keep investing and staying caught up or getting ahead. That’ll never stop.”
According to a recent study by the CyberRisk Alliance, global companies view AI as a cyber-security threat but are using the same technologies to fight back.
This from the survey:
• 22% of organizations spend most of their cybersecurity budget on AI-powered solutions.
• 64% are likely to add an AI-centric technology or solution to improve their cybersecurity readiness within the following year.
• 61% of respondents believe AI will outperform humans when identifying threats.
• 46% of respondents believe AI’s primary benefit will be the automation of response actions or repetitive tasks such as alert triage.
“Only about a third of respondents see adding AI-centric solutions as a top priority to improve their cybersecurity readiness,” The survey noted. “As it turns out, many of the same challenges that have organizations turning to more comprehensive cybersecurity solutions are the same challenges organizations see coming down the pipe with AI.”
“While organizations welcome advanced technology, many lack the skills and budget to manage it and are concerned about impacts to data privacy,” the Alliance added.
Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
Brian is also a finance and business writer for esteemed national platforms and publications, including CNN, TheStreet.com, CBS News, The Wall Street Journal, U.S. News & World Report, Forbes, and Fox News.
