Kevin Warsh during the 2026 European Central Bank Forum on Central Banking on July 01, 2026 in Sintra, Portugal.Horacio Villalobos/Corbis/Getty Images
Federal Reserve Chair Kevin Warsh expressed enthusiasm regarding artificial intelligence on Wednesday, characterizing the advancement as a "fundamental change" that would likely position the United States as a "significant beneficiary in the medium term."
"We are in the nascent stages of this transformation," Warsh stated in Sintra, Portugal, at a symposium hosted by the European Central Bank.
Warsh, who assumed leadership of the Fed last month, adopted a positive stance in the ongoing discourse among officials, investors, and the public concerning the potential ramifications of AI on employment and the broader economy.
The technology possesses the capability to generate employment and enhance productivity, thereby fortifying the economies of the U.S. and other nations, according to Warsh.
"This represents a major paradigm shift for both the execution of our policy and for our economies," Warsh remarked. "I anticipate more jobs and greater prosperity."
Corporate investment in AI has contributed to recent U.S. economic expansion, as indicated by various studies.
A substantial increase in AI expenditures accounted for approximately two-thirds of gross domestic product growth in the first half of 2025, according to JPMorgan Asset Management, surpassing the contribution from hundreds of millions of U.S. consumers. Many of the nation's leading corporations have allocated considerable resources to the semiconductors and data infrastructure essential for AI operations.
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Meanwhile, AI semiconductor manufacturers have played a role in the stock market’s appreciation this year, enabling major indices to recover from a period of underperformance by many of the technology behemoths that previously propelled the markets.
The stock prices of rapidly advancing AI chip producers have bolstered major indices. Micron has seen its value surge by 265% this year. Sandisk has climbed an extraordinary 750% during the same timeframe.
However, for the present, AI has not yet yielded returns commensurate with its substantial costs, as some analysts have previously communicated to ABC News. A product like AI would typically generate revenue through sales, either directly to consumers or to third-party businesses leveraging the technology to enhance their offerings. AI has encountered difficulties on both these fronts, according to some analysts.
Speaking on Wednesday, Warsh indicated that he anticipates a shift in business perspectives concerning the impact of AI.
"While we may observe business surveys indicating 'no significant impact,' my prediction is that in six months, the surveys will reflect quite the contrary," Warsh stated.
Sourse: abcnews.go.com