philip lelyveld The world of entertainment technology

Innovation at the Speed of AI

Governor Christopher J. Waller, Federal Reserve System Board of Governors

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I will focus on three aspects of major technological change that "repeat" through history. First, technological change is a constant in our lives, and it is almost always disruptive. It upends the way we work and socialize. Second, it alters existing power relationships in unsettling ways. Finally, technological change reliably raises productivity and our standard of living while improving the quality of our lives. My intent is to describe how AI is likely to affect our lives along these lines and how it differs from past technological changes. ...

Those who collected economic rents, or excess payments, from the control of power will lose those rents. But this will improve our lives in the process.

Whenever a new technology emerges, the first question economists get is about jobs: Will this replace people or make them more productive? The challenge is that, with innovation, there is often a time inconsistency between the costs and the benefits. The disruptions come first; the benefits take time. ...

History shows that adaptation, not avoidance, is what sustains progress. Each wave of technology has disrupted industries and employment, but over time it has also lifted productivity, raised real incomes, and improved living standards. ...

See the full speech here: https://www.federalreserve.gov/newsevents/speech/waller20251015a.htm