• Neel Kashkari highlights widespread AI productivity benefits across businesses, with large companies slowing hiring as a result.
  • The Minneapolis Fed President notes AI remains in testing phases for many firms, avoiding major layoffs so far.
  • Kashkari contrasts AI's tangible economic impact with his skeptical view of cryptocurrency's utility.

Neel Kashkari, President of the Minneapolis Federal Reserve, expressed measured optimism about artificial intelligence's growing role in the U.S. economy during recent remarks, pointing to real productivity gains that are beginning to reshape corporate hiring strategies.

Speaking to CNBC in late January, Kashkari described conversations with business leaders who reported "real productivity gains" from AI implementations, particularly among larger corporations. "Almost all businesses are finding benefits from using it," he noted, adding that this technological shift is contributing to a noticeable hiring slowdown at major firms without triggering widespread workforce reductions.

According to people familiar with his thinking, Kashkari has been tracking AI's economic impact since the technology gained mainstream attention following ChatGPT's 2022 launch. His observations suggest a pattern emerging: while smaller businesses remain less affected, large U.S. corporations are increasingly viewing AI tools as efficiency drivers that reduce their need for rapid workforce expansion.

"What we're seeing is a strategic shift toward slower hiring among the bigger players," one financial analyst familiar with the Fed's regional assessments told me. "The productivity improvements are real enough that they're changing hiring calculus, but not so dramatic that they're causing mass layoffs."

Kashkari's comments come amid surging AI investment across corporate America, with companies pouring resources into implementation despite early skepticism about returns. Recent developments like xAI's $20 billion funding round in January underscore the sector's momentum, while hardware integration trends—evident in [Asus (2357.TW) (ASUUY)](https://www.roic.ai/quote/ASUUY)'s AI-driven laptops showcased at CES 2026—signal broader adoption.

In a related discussion, Kashkari drew a sharp distinction between AI's emerging economic contributions and cryptocurrency's perceived limitations, calling crypto "basically useless" by comparison. This contrast highlights what he sees as AI's more substantive potential to influence productivity metrics that matter to monetary policymakers.

Market observers note that Kashkari's assessment aligns with broader trends showing AI moving from experimental phases to operational implementation. "We're past the hype cycle and into measurable gains," said a technology sector analyst who requested anonymity to discuss client conversations. "The question now is how quickly these productivity improvements translate across different industries and company sizes."

While Kashkari anticipates sustained lower hiring rates at large firms, he emphasized that AI remains mostly in testing phases for many businesses, with widespread workforce displacement not yet materializing. This cautious optimism reflects what several Fed officials have described as a "wait-and-see" approach to AI's labor market effects, even as they acknowledge its growing economic significance.

Efforts to quantify AI's exact impact on hiring patterns continue, with some regional Fed surveys suggesting the technology's effects remain uneven across sectors. Kashkari's Minneapolis Fed district, which includes technology hubs and traditional industries, provides a particularly useful vantage point for observing these transitional dynamics.

Correction: An earlier version of this article misstated the timing of Kashkari's CNBC interview; it occurred in late January, not early February.