Fed's Goolsbee sees AI drawing resources from traditional sectors
Chicago Fed President Austan Goolsbee argued AI is pulling resources from older industries, while a Google DeepMind economist warned laggards may struggle to hit 2% yearly growth.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
Chicago Federal Reserve President Austan Goolsbee argued that the AI boom is taking resources from traditional industries rather than simply adding to growth. He contended the economy would avoid recession even without AI. A Google DeepMind economist separately said economies falling behind in AI could struggle to reach 2% growth a year, citing Europe's stagnation.
Why it matters
The reports frame AI as a key factor in whether economies can keep growing. Economies that lag in AI may struggle to hit 2% growth a year.
Timeline
- Oct 15, 2:25 AM ET: A Google DeepMind economist warned that economies behind in AI could struggle to reach 2% growth, citing Europe's stagnation.
- Oct 15, 6:30 AM ET: Chicago Federal Reserve President Austan Goolsbee argued the AI boom is cannibalizing resources from other industries and that the economy would avoid recession without AI.
Coverage
- Warsh says rise of AI will prove ‘very bumpy,’ trigger demand shock (cfodive.com)
- Fed's Warsh says AI path will be 'very bumpy' but ultimately 'very good' for wealth (CNBC)
- Fed's Goolsbee: Even without AI, the economy would not be in recession (Yahoo News)
- Google DeepMind Economist: Without AI, Even 2% Growth Is Out of Reach (en.sedaily.com)
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