Study Results from Federal Reserve Bank Update Understanding of Artificial Intelligence (Artificial Intelligence and Technological Unemployment): Artificial Intelligence

2026 MAR 17 (NewsRx) -- By a News Reporter-Staff News Editor at Robotics & Machine Learning Daily News Daily News -- Investigators publish new report on Artificial Intelligence. According to news reporting from Richmond, Virginia, by NewsRx journalists, research stated, “How large are the effects of artificial intelligence (AI) on labor productivity and unemployment? We develop a labor-search model of technological unemployment where AI learns from workers, raises productivity, and displaces them if renegotiation fails.”

The news correspondents obtained a quote from the research from Federal Reserve Bank, “The model admits three steady states: no AI; some AI with limited capability, more job creation but higher unemployment; unbounded AI with endogenous growth and employment gains. Calibrated to U.S. data, the model implies a threefold productivity gain in the long run for workers exposed to AI but a 23% employment loss, half within five years. Plausible parameters give rise to global and local indeterminacy with endogenous cycles in productivity and unemployment, underscoring the uncertainty of AI’s impacts in line with a wide range of empirical findings.”

According to the news reporters, the research concluded: “Equilibria are inefficient despite the Hosios condition; subsidizing jobs at risk of AI displacement is constrained optimal.”

This research has been peer-reviewed.

For more information on this research see: Artificial Intelligence and Technological Unemployment. Journal of Monetary Economics, 2026;158. Journal of Monetary Economics can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Monetary Economics - http://www.journals.elsevier.com/journal-of-monetary-economics/)

Our news journalists report that additional information may be obtained by contacting Tsz-Nga Wong, Federal Reserve Bank, Richmond, VA 23219, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jmoneco.2026.103905. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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