Fed’s Daly: Little Evidence AI Is Boosting Labor Productivity

Daly's skepticism matters because it undercuts the productivity narrative that has been used to justify both AI investment enthusiasm and a benign inflation outlook. Coming from a Fed official, the comment signals that policymakers are not yet willing to treat AI as a supply-side offset to tight labor conditions, which keeps the burden on other data. The open question is whether this view spreads among her colleagues or remains a lone caution.