Federal Reserve Bank of Boston President Susan M. Collins visited Rhode Island on Tuesday to meet with business leaders, labor representatives, and entrepreneurs amid ongoing economic uncertainty. The discussions centered on how various sectors are coping with unpredictable factors such as artificial intelligence, inflation, and rising healthcare costs.

Collins began her visit in Chepachet at FM, a commercial property insurer that also conducts research and certification for fire protection, cybersecurity, and climate resilience products. She observed demonstrations on disaster prevention and mitigation techniques before participating in a roundtable discussion with executives from major Rhode Island companies.

John Fernandez, president and CEO of Brown University Health, spoke about the challenges posed by uncertain federal healthcare subsidies. "Uncertainty in health care over federal subsidies is 'horrendous' right now," Fernandez said. "That means less jobs in small towns, medium towns, and even big towns."

The conversation also addressed the growing impact of artificial intelligence on businesses. While some participants expressed concern about workplace adaptation, others were optimistic about its potential benefits. Fernandez noted that AI could streamline information-sharing between hospitals and insurers: “AI provides an opportunity to leap to the new and skip the sort of old-fashioned way we've done things.”

Joy Cave, chief financial officer at AAA Northeast, emphasized the cultural changes required for AI adoption: "It's not an easy transition for everyone," she said, "but the people who've leaned into it are really helping us work smarter, move faster, and stay ahead."

In Providence, Collins met with union leaders at the Rhode Island AFL-CIO office. Representatives of health care workers and other unions discussed how wages have not kept pace with inflation or increasing healthcare expenses. Desiree Leclair from the Healthcare Workforce Education Center warned of broader effects when high costs force people to defer medical treatment: a “cascade” of impacts can follow if individuals miss work due to untreated health issues.

Michael Roles of the Rhode Island Institute for Labor Studies and Research highlighted efforts to connect workers with quality jobs through training programs developed in partnership with local agencies. He cited one initiative that helped resolve a shortage of public transit drivers: “That driver shortage was solved,” Roles said.

Collins concluded her day at Hope & Main’s Downtown Makers Marketplace in Providence where she met food entrepreneurs participating in a culinary incubator program designed to help launch micro-businesses such as food trucks and specialty producers. According to Lisa Raiola, president and founder of Hope & Main, economic uncertainty has created additional challenges for these startups. “You never want people to feel that the excitement is drained by the uncertainty, right?” Raiola said. “That's a hard thing to hear.”

Entrepreneurs like Susanne Greelish of Ginger Gems described limited resources as a barrier: “I prayed, ‘Just make it through to my next production run,’” she said.

Benny Barber, Executive Chef of Hope & Main and owner of BSquared prepared foods company, expressed hopefulness despite obstacles: “There’s every challenge that we could all come up with, but there’s got to be a solution,” he said. “And the solution … is togetherness and community to share the brunt of the expenses that are coming our way.”

“We’re doing a lot of thinking about how firms are meeting strong demand with fewer workers, and without hiring, and really connecting that to a couple of things – (including) all the uncertainty that’s out there,” Collins said during her meetings.

Journalists seeking further information can contact Maureen Heydt from Boston Fed media relations.