Federal Reserve Bank of Dallas
International comparisons show AI effect on productivity
There is a positive relationship between artificial intelligence exposure and labor productivity growth in U.S. industry. But is AI itself responsible for that growth in the sectors most exposed to it? Because AI use varies across countries, we can draw on international data to investigate the relationship between AI exposure and productivity growth at the sector level. The positive relationship in the U.S. fits a pattern visible among countries and appears related to high AI use. U.S. labor productivity has grown at an annualized rate of 2.4 percent since the beginning of 2024.
AI is simultaneously aiding and replacing workers, wage data suggest
Artificial intelligence’s impact on the labor market will depend on whether the technology automates or augments worker tasks. Early data on employment and wages in AI-affected industries suggest it may be doing both. The distinction between codified knowledge (for example, established information gleaned from textbooks) and tacit knowledge (understanding gained through experience) is important. If AI can replicate codified knowledge but not tacit knowledge, AI will automate jobs requiring codifiable (textbook) knowledge but complement jobs demanding experiential tacit knowledge.
Funding to address broadband gaps in the Eleventh District
The Infrastructure and Investment Jobs Act (IIJA) became law in November 2021, allocating billions of dollars for upgrades and expansion of the nation’s infrastructure. Funding was awarded to various sectors including $65 billion for broadband.
Is federal broadband funding going to states that need it most?
Digital connectivity is important for everyone to gain access to productivity and life-improving technologies. As we march into the era of generative artificial intelligence and the acceleration of fintech for businesses and personal banking, digital inclusion (DI) becomes an increasingly important topic for community development and economic inclusion.
Texas, Louisiana and New Mexico laying groundwork for greater internet connectivity
Digital inclusion took on new urgency in the U.S. when the COVID-19 pandemic thrust the issue into the spotlight, forcing schools, governments and businesses to expedite the move online. While broadband access is necessary to fully participate in society and the economy, it’s not available or affordable for many. The costs of having inadequate access—or no internet at all—can be high, limiting opportunities for success, educational achievement, positive health outcomes, social inclusion and civic engagement, according to the Digital Equity Act of 2021.
Closing the Digital Divide: A Framework for Meeting CRA Obligations
The Community Reinvestment Act (CRA) provides a significant opportunity to help close the digital divide across communities while simultaneously benefiting financial institutions and improving economic stability. The CRA is a law that encourages banks to make loans and investments and provide services to low- and moderate-income communities. The law was passed in 1977 to address redlining—the denial of credit to individuals based on where they live. Every year, the CRA helps bring more than $100 billion in capital to LMI communities across the country. The law is intended to be broad, flexible and responsive to changes within communities.
This publication seeks to highlight best practices and “what works” to provide a roadmap for successful lending, service and investments to close the digital divide for LMI families and rural communities. Moreover, this framework provides clear evidence of how investments in broadband can improve the lives of individuals and can help create an inclusive and vibrant entrepreneurial economy.