In a speech delivered on February 17, 2026, to the New York Association for Business Economics, Federal Reserve Governor Michael Barr explored potential impacts of artificial intelligence (AI) on the labor market. Barr proposed three scenarios that could emerge from the AI revolution: a jobless economic boom, a bust, or a balanced outcome. He speculated that the aggressive growth of AI could lead to widespread unemployment, with certain workers becoming nearly unemployable due to the capabilities of highly autonomous systems replacing many professional roles. He cited that industries like transportation and manufacturing could be notably affected, displacing many jobs unless substantial changes are made in education and workforce development. In contrast, Barr outlined a bust scenario where technological progress stagnates due to factors like declining user input, resource scarcity, or lack of investment returns, which could shift the focus from labor market impacts to challenges within the financial sector. Barr also referenced historical events, comparing the current AI landscape to the dot-com boom, suggesting that while initial unemployment may occur due to skill mismatches, adaptive training and education may allow workers to navigate these disruptions successfully. Ultimately, he proclaimed that proactive societal investments in workforce training and job creation are essential for ensuring that the benefits of AI advancements can be widely shared, underscoring the urgency to address the challenges faced by young, early-career workers in high-exposure fields.