Minneapolis Fed President Neel Kashkari said large companies are tapping the brakes on hiring as they begin to realize productivity gains from artificial intelligence. In a CNBC interview, he noted that while some AI investment has been misallocated, many firms now report tangible efficiency improvements, leading to a labor market marked by low hiring and low firing. The effect is less evident among smaller businesses. Since the 2022 launch of ChatGPT, corporate America has poured billions into AI, stoking optimism over efficiency gains alongside concerns about job security and safety.
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