The US Federal Reserve has appointed Xbox chief executive Asha Sharma to a new 'Productivity and Jobs' taskforce set up to assess the economic impact of emerging technologies, including artificial intelligence. Sharma, who previously worked in Microsoft's Core AI group before succeeding Phil Spencer as head of the company's gaming division earlier this year, will serve alongside venture capitalist Marc Andreessen and Stanford economist Charles I. Jones. The appointment is notable given its timing, arriving just as Sharma oversees a major restructuring of the Xbox business.

The news comes days after Sharma began cutting jobs at Xbox, with 1,600 staff let go on Monday and a further 1,600 roles due to be axed over the current financial year, alongside the departure of four studios and cancelled projects. In her 'Reset' memo, Sharma set out plans to simplify the organisation — reducing management layers from as many as 14 down to no more than five, cutting vendor spending by 50%, and concentrating on major franchises such as Halo, Minecraft, Candy Crush, Fallout and The Elder Scrolls. Fed Chairman Kevin Warsh said the taskforces would examine whether policymakers' tools and approaches could be improved as the US economy undergoes significant change.