Fed’s Cook Sees AI Shaping Jobs and Inflation Outlook

Federal Reserve Governor Lisa Cook said advances in artificial-intelligence technology have implications for both sides of the central bank’s dual mandate, with potential to influence labor-market conditions and help contain inflation. Cook noted that, while many companies report pausing most capital projects amid economic uncertainty, spending on AI remains an exception, with deployment continuing at a brisk pace. She added that the productivity gains associated with the technology could translate into “gains to price stability,” suggesting AI may support lower inflation over time even as it reshapes employment patterns.