Chair of the Federal Reserve of the United States Kevin Warsh recently told lawmakers that artificial intelligence has not displaced workers so far and appears to be making employees more productive, FedScoop reported.

He added that the central bank is closely monitoring the technology’s long-term impact on the labor market.

Speaking before the House Financial Services Committee, Warsh said recent economic data shows AI adoption has not led to widespread job losses. Instead, he noted that employment remains stable and job creation continues to keep pace with workforce growth.

However, he cautioned that it remains too early to determine whether that trend will continue as AI capabilities advance. The Federal Reserve is also evaluating how AI could affect employment, inflation, and economic growth over the next several quarters. To better understand those effects, the Federal Reserve has established a task force to study AI’s influence on jobs and productivity.

Warsh said policymakers are particularly focused on whether AI will augment workers and create new opportunities or temporarily disrupt portions of the workforce.

Despite the uncertainty, Warsh expressed optimism about the technology’s potential. He described AI as a major technological shift that could deliver substantial productivity gains and strengthen the broader economy over time.