Fed Governor Barr Warns Rapid AI Adoption May Widen Income Inequality

Cointime update: Federal Reserve Governor Michael Barr warned on Nov. 13 that rapid AI adoption could deepen inequality in the near term and that policymakers must prepare for severe short-term shocks to the labor market. Speaking at Yale University, Barr said the extent and duration of AI’s impact will depend on regulatory safeguards now being established, and cautioned that dominance by a few AI firms could concentrate market power, raise market concentration and lower labor’s share of income.