Kansas City Federal Reserve President Jeff Schmid Friday said he believes that the advent of artificial intelligence is leading some businesses to pause hiring even as an aging population is creating real structural change in the labor market.

"Between fiscal policy and just the nature of the Baby Boomer class retiring out, we have a real structural thing going on," Schmid said.

"AI's got a lot of different elements to it, but there's people, businesses in particular are starting to pause," Schmid added.

"We're taking a pause before we hire the next person to say, what is the skill set we need."