AI Productivity May Not Curb Inflation
IMF chief economist Silvana Tenreyro warns that artificial intelligence productivity gains might not lower inflation. Increased spending on AI infrastructure could trigger supply crunches and push prices higher.
Artificial intelligence productivity gains may fail to curb inflation, according to research published by the Bank of England on Thursday. The findings challenge the assumption that automation automatically lowers consumer prices. Central bankers in the United States and elsewhere have argued that faster technological output growth helps tame price pressures.
