According to recent remarks from Kashkari at the Federal Reserve, the ongoing AI wave is predominantly a story about big tech companies scaling up their operations and capabilities. The narrative being heard in policy circles centers on how the major players are capturing most of the value from artificial intelligence adoption.

Interestingly, Kashkari noted that this trend doesn't seem to be creating significant headaches for small and medium-sized enterprises at this stage. The concern isn't widespread across the SMB sector—it's concentrated at the enterprise level where massive infrastructure investments and computational resources are required.

This observation carries implications for how we should be thinking about the AI narrative. While the headlines focus on AI disruption and transformation, the actual economic impact appears concentrated rather than democratized. Large corporations with the capital to invest in AI infrastructure are capturing disproportionate gains, while smaller operators aren't facing the same pressure or opportunity set.

For markets watching inflation, employment, and growth dynamics, this distinction matters. The Fed's perspective suggests AI benefits may not be trickling down as broadly as some optimistic scenarios suggest, at least not yet.