Walsh Claims AI Could Become a New Factor of Production, Annual Token Sales Exceed $100 Billion

Federal Reserve Chairman Kevin Walsh pointed out in his speech at Jackson Hole that the development of artificial intelligence has become a turning point in history, with its progress surpassing optimistic expectations from a few years ago. Business capital expenditures have grown at the fastest pace since 2021, with an increase of about 9% over the past four quarters, more than half of which is related to AI construction. In the future, attention will be focused on the second-order changes in AI capital expenditure growth, specifically whether the growth rate continues to accelerate. Walsh stated that the annualized Token sales of two leading AI companies have exceeded $100 billion, representing an increase of over 500% compared to a year ago. The Federal Reserve has regarded AI as a new variable that could become a new factor of production, impacting economic growth and monetary policy. Walsh also mentioned that there are currently no clear answers regarding whether AI can lead to sustained productivity improvements, the relationship between Token usage and the labor force, and the allocation of the economic surplus created by AI.