Key facts
- Xbox CEO Asha Sharma has been appointed to a Federal Reserve task force on AI's impact on jobs.
- The task force will examine how artificial intelligence and other emerging technologies reshape the economy.
- Sharma's appointment comes days after Xbox announced plans to cut approximately 3,200 jobs.
- The Federal Reserve is forming five task forces to review its monetary policy approaches.
- Other members of the Productivity and Jobs task force include Marc Andreessen and Charles I. Jones.
Xbox CEO Asha Sharma has been appointed to a Federal Reserve task force focused on the economic implications of artificial intelligence and other emerging technologies. This appointment follows a significant restructuring at Xbox, which includes the elimination of approximately 3,200 jobs.
The Federal Reserve announced Sharma's inclusion in its Productivity and Jobs task force on Thursday. This group is part of a broader initiative by the central bank to enlist outside experts from economics, business, and central banking to review and potentially improve its approaches to monetary policy. The task force will specifically study the economic impact of new general-purpose technologies like AI.
Sharma, who previously held a role in Microsoft's Core AI group, will serve alongside notable figures such as Marc Andreessen, co-founder of Andreessen Horowitz, and Stanford economics professor Charles I. Jones. Federal Reserve Chairman Kevin Warsh highlighted the rapidly changing economic landscape as the impetus for these reviews.
The layoffs at Xbox, described by Sharma as the "most significant restructure in Xbox history," are attributed to factors including lower profit margins compared to similar businesses, a smaller install base for the current generation of consoles, and increased costs. Sharma communicated to employees that the business was "not healthy" and required a reset, despite acknowledging the talent and dedication of the affected staff.
Sharma's appointment also occurs amidst a wider trend of tech companies reducing headcount while increasing investment in AI. Companies like Snap and Meta have recently announced significant layoffs, with their leadership emphasizing a strategic shift towards AI-powered tools and development.