Asha Sharma, the current CEO of Xbox, has been selected by the United States central bank, the Federal Reserve, to join a new task force focused on advancing the conduct of monetary policy. This task force, named the Productivity and Jobs initiative, will examine the economic implications of emerging technologies, particularly artificial intelligence, to inform the Fed's policy decisions regarding job creation and price stability.
Sharma's appointment places her alongside notable figures such as billionaire investor Marc Andreessen and Stanford economics professor Charles I. Jones, who is currently on leave to serve as a scholar-in-residence at the AI company Anthropic. The Fed chairman, Kevin Warsh, stated that these new task forces are integral to the organization's commitment to maintaining price stability and achieving maximum employment.
Sharma, who has a background in AI from her tenure at Microsoft, recently implemented significant price increases for Xbox products and conducted substantial layoffs within the company. These decisions were met with public criticism and contributed to a recent decline in sentiment surrounding the Xbox brand. She has previously expressed a commitment to avoiding "soulless AI slop" at Xbox and has already begun canceling certain AI-related projects under her leadership.
The newly formed task forces are designed to operate independently, aiming to "follow the evidence, provide candid feedback, and produce rigorous findings." In addition to the Productivity and Jobs task force, the Federal Reserve is establishing other groups to enhance its communication strategies, analyze general costs and benefits, improve the quality and timeliness of economic data, and refine its approach to tracking and responding to inflation. The recent "Xbox reset" announced by Sharma included the elimination of 1,600 positions, with further layoffs anticipated, alongside the closure of five studios and the cancellation of several games, including an intended sequel to Avowed. Sharma cited the Xbox business's unhealthy state and the necessity for major changes as the justification for these measures.