San Francisco Federal Reserve President Mary Daly stated that while there is currently insufficient evidence to suggest artificial intelligence (AI) has fundamentally altered the U.S. economy, policymakers must remain open to the potential impacts of this new technology and promptly identify relevant signals. Daly noted on Tuesday that the developmental potential of AI is evident, but the specific timing and mechanisms through which it will profoundly affect the economy remain uncertain. "It is not difficult to see the possibilities; the real challenge lies in determining how and when these changes will unfold," Daly remarked. In her speech, she referenced former Fed Chairman Alan Greenspan's forward-looking assessment of computers and the internet in the 1990s. At that time, Greenspan indicated that new technologies would profoundly transform work and business models, driving economic growth without fueling inflation. Daly suggested that artificial intelligence might follow a similar path, though its full impact may take longer to manifest in macroeconomic data. She emphasized that before technological changes are fully reflected in overall economic indicators, policymakers need to "detect early signs of change," which requires delving into more granular data to uncover clues signaling structural transformation. Currently, Federal Reserve officials are attempting to assess the potential impact of AI on economic and productivity growth. Productivity is seen as a key solution for achieving economic expansion without triggering higher inflation. On this issue, differing views are emerging. Kevin Warsh, whom former President Donald Trump indicated he would nominate as the next Fed Chair, believes AI is reshaping the economic structure and that the Fed must acknowledge this change. He and some others argue that if AI sparks a productivity boom, policymakers should correspondingly lower interest rates. At the policy level, the Federal Reserve chose to hold rates steady last month after three consecutive rate cuts. Previously, toward the end of 2025, the Fed had cut rates three times in a row to bolster a weakening labor market. Daly expressed support for the decision to maintain rates last month but still anticipates one or two potential rate cuts this year. Recent data also provide context for the policy discussion. A report released by the U.S. Bureau of Labor Statistics on February 11 showed a noticeable rebound in U.S. hiring activity in January, with job additions reaching the largest increase in over a year, indicating some recovery in the labor market at the start of the year.