Federal Reserve Governor Lisa Cook today called for a consensus to be reached in the regulation of artificial intelligence, which she sees as poised to have a “substantial effect” on U.S. and global markets. In a speech at a Fed event in Atlanta, Cook said she anticipates an increase in productivity because of AI. However, there remains substantial uncertainty in that forecast because of the nature of adaptation to new technology, as well as from policy decisions that govern the process, she said.
“Fostering the global innovation ecosystem remains desirable through research and development, advanced education, worker training and retraining, and legal protections for intellectual property,” Cook said. “Moreover, a consensus needs to be forged on the benefits and costs of regulation of the use of AI in the areas of privacy, compensation for training data, perpetuation and amplification of bias, and fraud.”
Cook added that AI development could benefit from broader inclusion across demographic groups in the startup and research communities.
“In short, AI will be translated into productivity improvements with ‘long and variable lags,’ as we monetary policymakers like to say,” she said. “The changes we see in the macroeconomy — aggregate output, employment and income — are the collective effect of millions of firms, households and government policymakers thinking through what AI means for them.”
