Speaking at Yale University on November 12, Federal Reserve Governor Barr cautioned that the rapid adoption of artificial intelligence may intensify inequality in the near term and that policymakers must brace for serious short-term disruptions to the labor market. Barr noted that the scale and duration of AI's impact will hinge on the regulatory safeguards currently being put in place. He warned that if a handful of AI companies come to dominate the market, excessive concentration of market power would widen inequality: executives and shareholders of these firms would see their wealth swell, while smaller companies could lose market share. Under such circumstances, Barr said, the vast majority of businesses and their employees would struggle to gain full access to continuously improving AI tools, would reap fewer benefits, and the labor share of income would decline, market concentration would rise, and inequality would worsen. Barr did not directly address monetary policy or the economic outlook.