Federal Reserve Vice Chairman Jefferson: The rise of artificial intelligence is in stark contrast to the formation of the Internet bubble

Federal Reserve Vice Chairman Jefferson said he believes there is a clear difference between the rise of artificial intelligence and the late 1990s internet boom. Jefferson, in a speech prepared for an event held by the Cleveland Fed on Friday, stated: "In contrast, many internet companies from the late 1990s and 2000s 'hardly realized profits, only speculative income prospects even though they obtained external funds, and relatively easily went public on stock exchanges amidst investor enthusiasm'." Jefferson added that the valuation of artificial intelligence-related companies measured by price-to-earnings ratio is still far below the peak levels of internet companies. He said there were over 1,000 companies listed as internet companies during the peak of the internet bubble, but now there are about 50 companies focused on artificial intelligence. Jefferson also stated that it may be too early to assess the impact of the rise of artificial intelligence on the Federal Reserve's monetary policy decisions. Jefferson said the financial system remains stable and resilient.