BEREA, Ky. — The debate over artificial intelligence is splitting along two very different lines right now.
In the United States, one of the big questions from policymakers is whether AI is actually showing up in the economic data as higher productivity, or whether the excitement is still ahead of the measurable benefits. In Europe, at least one major institution is treating built-in AI tools as a security risk first, and turning them off on official devices.
📊 The U.S. View: Show Me the Data
San Francisco Federal Reserve President Mary Daly put the U.S. version of the question plainly in remarks delivered Feb. 17 in San Jose.
Daly said the Federal Reserve needs to “dig deep” into the data to assess whether AI is boosting productivity and potential output in a meaningful way. This matters because it dictates how the Fed thinks about inflation and interest rates. If productivity rises, the economy can grow faster without pushing prices up as quickly. If it does not, policymakers cannot assume AI will do the work of cooling inflation.
Daly’s point was not that AI is meaningless. It was that there is still a gap between real-world use cases and the kind of broad, sustained productivity lift that changes the macro picture. She compared the moment to earlier technology waves where investment and adoption came first, and the productivity gains showed up later, unevenly, and with a lag.
🔒 The European View: Secure the Perimeter
That caution contrasts with a move in Europe that is less about productivity and more about exposure.
Multiple outlets reported this week that the European Parliament has disabled built-in AI features on work devices used by lawmakers and staff. The decision cites cybersecurity and privacy concerns about sensitive information being processed through cloud-connected tools. In other words, the worry is not whether AI will transform work; the worry is where the data goes when staff use it.
🌍 Why the Contrast Matters
Put together, the contrast is useful for understanding the current landscape:
- In the U.S., central bankers are trying to answer a slow, statistical question: Are firms using AI in ways that make the economy more productive, or is the impact mostly localized and hard to measure so far?
- In Europe, lawmakers are dealing with a fast, operational question: Can staff safely use AI tools on official devices without risking confidential material, especially when the underlying systems may route content through external services?
Both concerns can be true at the same time. A technology can be promising but not yet fully reflected in productivity statistics. It can also be risky to deploy inside sensitive institutions if the security model is not crystal clear. The difference is what each system is optimizing for right now: U.S. policymakers are watching the macro outcomes, while European institutions are tightening internal controls while they sort out the governance.
🔗 Where to Read More
- Mary Daly Speech (SF Fed)
- Reuters on Daly’s Remarks
- TechCrunch on European Parliament Restrictions
- The Register Analysis
🖊️ About the Author
Chad Hembree is a certified network engineer with 30 years of experience in IT and networking. He hosted the nationally syndicated radio show Tech Talk with Chad Hembree throughout the 1990s and into the early 2000s, and previously served as CEO of DataStar. Today, he’s based in Berea as the Executive Director of The Spotlight Playhouse, proof that some careers don’t pivot—they evolve.