Artificial intelligence (AI) has potential for transformational economic change, but the specific ways these changes will unfold are unclear. As Federal Reserve Bank of San Francisco President Mary C. Daly has said, “Technological change is inevitable. How it affects the economy and society is not.”
So how is this technology being used and what are the implications for workers, communities, and the economy?
As part of the Federal Reserve Bank of San Francisco’s work to understand the economic experiences of communities across the Federal Reserve System’s Twelfth District, we have been paying close attention to AI’s implications for the economy. The San Francisco Fed created the EmergingTech Economic Network in collaboration with the Federal Reserve System Innovation Office to share research and insights from across the Federal Reserve System, in academia, and in the private sector related to emerging technologies like AI. The Community Engagement and Analysis team has also been conducting research and engaging across sectors to understand the implications of AI—and particularly generative AI—for businesses, communities, and the community development field.
Community Investments delves into emerging and evolving topics relevant to community development stakeholders’ efforts to increase investment and economic opportunity in lower-income communities. This issue explores the current state of AI and the community development field, and what it might signal about potential future impacts, with these questions in mind:
- How are small businesses and other community development stakeholders—including representatives from workforce training and education organizations, nonprofits, and businesses—deploying AI, and what early insights have they shared?
- What does on-the-job exposure to AI look like for lower-income workers across the Federal Reserve’s Twelfth District, and how are workforce development and training systems adapting their approaches to account for emerging technologies?
- What role could technical assistance play in helping lower-income communities and community development stakeholders adapt to AI, and how can nonprofits and philanthropic organizations develop policies that harness the benefits of AI while protecting against risks?
We hope this issue of Community Investments will help break down the topics, bring data to the conversation, and highlight real-world examples to bring more perspectives and voices into the conversation.
This article is part of a Community Investments series exploring the ways in which the growing prevalence of artificial intelligence may be impacting economic conditions, especially in low- and moderate-income communities and among community development stakeholders. Gaining greater insight into emerging economic trends through community engagement and analysis—including better understanding the economic experiences of lower-income workers and consumers—contributes to the Federal Reserve Bank of San Francisco’s work to support monetary policy, strengthen financial institutions, and enhance the payments systems.