U.S. Senator Reverend Raphael Warnock is pushing for policies that would protect American workers amid the rise of Artificial Intelligence, or AI. Warnock questioned Federal Reserve Chair Kevin Warsh about the possibility of economic uncertainty due to the growth of the AI industry. Here’s part of that exchange.
“According to a Bloomberg analysis, AI spending most recently climbed to about 8% of the U.S. gross domestic product, driving the country's economic growth,” Senator Warnock said. “Chair Warsh, you have long been bullish on AI. However, up to now, despite investors betting big on them, none of the major AI models have been meaningfully profitable. What are the consequences to our economy if none of these companies ever become profitable?"
Federal Reserve Chair Kevin Warsh said, “So, if they were to disappoint investors, I think the capital markets would dry up for them, and some of that capital investment would be curtailed.”
The remarks came this week during a meeting of the Senate Banking Committee’s Economic Policy Subcommittee.
