Federal Reserve official Lael Brainard stated AI is driving major economic shifts and may lead to temporary unemployment increases. Brainard, a key Fed policymaker, emphasized the technology's disruptive potential during a recent speech. She noted AI could automate tasks across industries, affecting workers in sectors like manufacturing and customer service.

The central bank will monitor these changes closely. Short-term unemployment could rise as companies adopt AI systems, though Brainard expects job markets to adapt over time. This signals the Fed's growing concern about AI's labor market impact.