Key facts
- Michelle Turner, a first-time founder, utilized AI tools to develop her startup, Here Now Health.
- Here Now Health provides mental health counseling for foster children and has 16 employees.
- AI has enabled entrepreneurs to scale faster and reduced the cost of accessing startup resources.
- Federal Reserve officials are analyzing AI's impact on productivity, employment, and economic growth.
- Concerns exist about AI potentially increasing unemployment, while others see it as a job transformer.
- A study indicates 23 million workers are at risk of career disruption due to AI.
Michelle Turner, a first-time founder and mother of six, leveraged artificial intelligence tools to rapidly launch and expand Here Now Health, a mental health platform for foster children. Working from home, she used AI to educate herself on startup culture, develop a business plan, and refine investor presentations, enabling her to secure early-stage funding. The company, founded in January 2025, now employs 16 people and is certified in three states to provide Medicaid-funded counseling.
Turner described the AI guidance as akin to a daily master's class, crucial for her success given her lack of traditional business credentials. Her journey exemplifies how AI is lowering barriers for entrepreneurs, allowing them to scale faster and hire staff, even if they are not AI-centric companies themselves.
The rapid proliferation of AI is a key focus for Federal Reserve officials, who are assessing its potential to boost productivity, economic growth, and alter labor demand. While some foresee AI leading to higher structural unemployment, others, like John Bailey, believe it will transform rather than eliminate jobs, similar to previous technological shifts. Torsten Slok of Apollo Global Management noted that AI is reducing the cost and complexity of launching companies, potentially leading to job creation as these firms grow.
However, concerns remain about the disruptive nature of AI. Richmond Fed President Thomas Barkin acknowledged the potential for job displacement in some white-collar roles but also highlighted how AI is helping to alleviate worker shortages in skilled occupations and increase productivity for existing staff. Researchers warn that clerical and administrative workers, particularly those without college degrees, are at significant risk, with a study identifying approximately 23 million individuals whose career progression could be hindered by AI replacement, potentially leading to lower-paying roles.