Artificial intelligence might replace jobs on a large scale in the next few years, Federal Reserve Chairman Jerome Powell said. 

Powell’s comments, made Tuesday in testimony before the House Financial Services Committee, indicate that the central bank is taking seriously the possibility of labor market disruptions from the rapid advancements in AI technology. 

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“There’s certainly a possibility that, at least in the beginning, that AI will replace a lot of jobs, rather than just augmenting people’s labor,” Powell said. 

In the long run, Powell added, AI may raise productivity and lead to greater employment. He said, though, that it is a “transformational technology,” with effects that are “unknowable, but certainly there will be important effects on the labor market.”

Powell had been asked by Rep. Bill Foster (D-IL) about comments from tech CEOs that AI was likely to lead to job losses in the next few years. 

“Anyone who’s been exposed to AI has to be kind of stunned with what it’s capable of,” Powell acknowledged, noting that leading tech figures are predicting further dramatic improvements in AI in the next few years. He said that the Fed both digests information about AI, from businesses and researchers, and produces its own analysis of the effects of technology. 

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Asked by Foster whether the Fed had a playbook for addressing labor market dislocations from AI, Powell said that such plans are a task for Congress. The central bank will focus on its goal of maximizing employment and keeping prices stable, he said.