AI Could Drive Short-Term Inflation, Warns Swiss National Bank

Artificial intelligence could lead to higher inflation in the short term, according to Swiss National Bank governing board member Petra Tschudin. Speaking in an interview, she noted that AI can push up prices due to redirected investment flows and potential shortages.

Tschudin said, 'Investment flows are being partly redirected, which can mean adjustments and difficulties for the rest of the economy.' She cited an example of chip shortages leading to rising prices.

In the longer term, AI could increase productivity and lower prices. However, this would require a consistent decline in prices over time, something Tschudin questioned.