Forget the idea of artificial intelligence breaking free from human control and taking over the world. A more immediate concern is how today’s generative AI tools will impact the labor market. Some experts predict increased productivity and job satisfaction, while others fear mass unemployment and social upheaval.
Mary Daly, CEO of the Federal Reserve Bank of San Francisco, is closely monitoring the situation. As a labor market economist, she is particularly interested in the potential changes generative AI might bring to the job market.
Daly recently spoke with WIRED senior editor Will Knight over Zoom. The conversation has been edited for brevity and clarity.
In your discussions with early adopter companies, what have you observed about the use of generative AI and its impact on workers?
Many companies are exploring the possibilities of generative AI. While some may replace workers, others are using it to enhance their workforce. Overall, firms are not solely relying on AI for job replacement.
For example, one company used generative AI to assist in writing descriptions for items they sell. By automating this task, employees were able to focus on more engaging work.
Do you believe generative AI will lead to job losses overall?
Historically, technology has not resulted in a net loss of jobs. The impact of technology tends to fall somewhere in the middle, depending on how we engage with it. Generative AI presents opportunities to replace, augment, and create new roles for workers, but there will be winners and losers. It is crucial for us to consider how we utilize this technology.
Could white-collar workers benefit from AI-powered tools?
Education and a tight labor market can encourage companies to use AI in a way that enhances human potential. Companies are driven by profitability and productivity, which can lead to more effective utilization of talent. While the initial inclination may be to replace workers, it is not a foregone conclusion.
Some companies focused on developing AI tools may prioritize replacing humans, but there is potential for AI to empower workers if used thoughtfully.
