Federal Reserve Chair Kevin Warsh said artificial intelligence has become a potentially new factor of production with implications for economic growth, productivity and monetary policy. In his first Jackson Hole keynote as chair, Warsh described AI as a hinge point in history and said annualized token sales at the two leading AI labs now exceed $100 billion, up more than 500% from a year earlier. Business capital expenditures have risen about 9% over the past four quarters, with more than half of that growth linked to AI investment. Warsh said the Federal Reserve is watching whether the pace of capital-spending growth continues to accelerate, as well as whether AI raises productivity, complements or competes with labor, and concentrates economic gains among AI labs, chipmakers, energy producers and cloud providers. A Fed task force is studying productivity and jobs, but Warsh said its conclusions do not affect decisions in the current policy environment.