Artificial Intelligence AI Reshapes US Economy as Businesses and Policymakers Adapt

Artificial intelligence is accelerating business growth, attracting billions in investment and prompting debate over its long-term impact on jobs, productivity and economic growth.

Artificial Intelligence is reshaping the US economy as businesses adopt AI tools to build companies faster, while policymakers assess the technology’s impact on employment, productivity and long-term economic growth.

One example is Here Now Health, a mental health platform that supports children entering the foster care system.

Founder Michelle Turner launched the company in January 2025 despite having no formal background in technology or business.

AI helps build a business

Working from her home in Virginia Beach, Turner used AI to learn the basics of starting a business.

The technology also helped her prepare a business plan and improve presentations for investors.

As a result, Here Now Health has grown to 16 employees.

The company now operates in three US states and provides Medicaid-funded mental health counselling for foster children.

Turner said AI became a personal adviser that helped her overcome the challenges of launching her first business.

Policymakers assess economic impact

Meanwhile, the growing influence of AI has become a key issue for US policymakers.

The Federal Reserve is studying how artificial intelligence could affect productivity, inflation, labour demand and economic growth.

A dedicated panel will examine the technology’s long-term economic implications.

Some Federal Reserve officials believe AI could increase structural unemployment by allowing businesses to produce more with fewer workers.

However, other economists argue that AI will mainly change the nature of work rather than eliminate jobs.

Investment and productivity

At the same time, companies continue to invest billions of dollars in AI infrastructure, including data centres.

These investments are boosting economic activity while increasing demand for electricity, labour and capital.

Jean Boivin, head of the BlackRock Investment Institute, said financial markets are weighing two possible outcomes.

On one hand, rising investment could create shortages of resources.

On the other hand, stronger productivity could support faster and more sustainable economic growth.

Entrepreneurship becomes more accessible

John Bailey, a senior fellow at the American Enterprise Institute, said AI is reducing the time and cost of starting a business.

Consequently, more entrepreneurs can launch and expand companies without large teams or technical expertise.

Although concerns about job losses remain, Bailey believes AI will transform many occupations instead of replacing workers entirely.