As companies race to figure out how generative AI fits into their business, many are holding off on hiring, contributing to what San Francisco Federal Reserve president Mary C. Daly calls a "transition dynamic" that's leaving job seekers in limbo.

Why it matters: Daly's comments Tuesday offer fresh insight into how AI is playing out in the Fed's Twelfth District, which includes the Bay Area and its ongoing AI-fueled boom.

Zoom in: Businesses are worried about hiring the "wrong workers" rather than hiring too many as they wait to see how AI integration plays out, she told Axios after remarks at San Jose State University.

• "Right now they're in this interrogation phase of, 'what is AI going to help us do and not do? And once we figure that out, then we can think about hiring.'"

The big picture: In response to questions about job anxiety, Daly said that no technology "ever reduces net employment," but it does change what employment looks like.

• Currently, AI is helping to replace tasks, and it will eventually lead to workforce augmentation and job creation, according to Daly.
• "Businesses are reskilling to meet the AI moment, and that's going to cause worker anxiety," she noted.
• While it's natural to feel nervous, "it's not the same thing as AI is taking all the jobs," she added. "If you put off technology because you're afraid of it, then you won't … use the technology to further your own abilities."

Between the lines: Governmental entities are walking a fine line between regulation without stifling innovation, she said.

• Daly also cautioned against connecting the AI boom to productivity growth.
• The labor market is slowing, even in "industries that are directly telling us they're using AI," she said.

Reality check: Big questions remain about whether AI will ultimately be a force for positive or negative change in society.

• AI industry leaders have warned of the technology's dangers in an unchecked environment, and concerns about job loss and displacement remain at the forefront for many.
• The data centers AI relies on have also raised questions about who ultimately pays for their boundless energy appetites.

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Rev. Jesse Jackson, a civil rights icon who spent his career fighting racial inequality and mounted two historic presidential bids, died Tuesday at 84.

The big picture: Jackson leaves behind an expansive legacy — from marching alongside Rev. Martin Luther King Jr. to founding the Rainbow PUSH Coalition.

Zoom in: Though raised in the South, Jackson forged ties to San Francisco, visiting often to organize in the city, back local labor and racial justice campaigns and help shape the Bay Area's activism.

• Here are a few of those moments from over the years.

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✍️ Mayor Daniel Lurie signed legislation yesterday to launch the RESET center, a new 25-bed capacity sobering facility in SoMa set to open this spring. (SF Gazetteer)

The 80-year-old woman accused of killing a family of four in West Portal two years ago pleaded no contest to four felony counts of gross vehicular manslaughter. The judge indicated she likely won't face prison time. (SF Chronicle)

🎤 Bruce Springsteen will perform at the Chase Center on April 13 as part of three new tour dates he announced yesterday. Tickets go on sale at noon on Friday. (The Mercury News)

A group of backcountry skiers were reported missing during an avalanche near Lake Tahoe yesterday amid a strong winter storm that's shut down major roads and left people without power. (SF Chronicle)

🚧 Travelers should expect delays at SFO starting March 30 as the airport will close one runway for six months to make upgrades and repairs. (USA Today)

A coalition of pro-housing organizations is suing San Francisco over Mayor Daniel Lurie's family zoning plan, arguing that it fails to meet the state's housing mandate and doesn't properly rezone for lower-income housing.

Why it matters: It's the second legal challenge in two months against Lurie's zoning agenda, which he has lauded as a landmark accomplishment since its approval in December.

Driving the news: The lawsuit, filed Thursday by YIMBY Law, California Housing Defense Fund and Californians for Homeownership, alleges that the family zoning plan does not deliver the upzoning requirements of California's housing laws.

• The coalition cites city economist Ted Egan's October analysis, which found that the proposed rezoning would create roughly 14,600 new units over the next 20 years in the best case scenario.
• That falls short of the state's mandate for the city to plan for 82,000 units by 2031, which would require rezoning for 36,000 new homes in the next six years, per the San Francisco Standard.

The other side: The family zoning plan helps ensure the next generation of San Franciscans can afford to raise their kids here without handing the keys to Sacramento, Lurie spokesperson Charles Lutvak told Axios via email.

• "We're going to meet state requirements while protecting what's so special about our neighborhoods and our city.

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San Franciscans love to complain about how expensive the city has become — and as costs keep rising, we want to know how you're saving money.

❌ Have you implemented no-spend days or adopted the 30-day delay rule on purchases?

🍔 Do you avoid eating out or use apps to get discounts or cash back when at restaurants?

🚗 Have you sold your car to avoid hefty parking fines or other ownership fees?

🧘🏻‍♀️Are you scouring social media to find free events or workout classes?

🛋️ Have you sold your clothing, furniture, or other items or do you buy secondhand?

📺 Have you cut out streaming services or downgraded plans?

Hit reply with your money-saving hacks!

• We'll share ideas that are weird, practical and (most importantly) work.