AI Could Drive Up Inflation in Short Term, Warns Swiss National Bank

The Swiss National Bank is taking a close look at how artificial intelligence might impact prices in the economy. According to Petra Tschudin, a governing board member of the SNB, AI could push up inflation in the short term due to potential shortages and price increases.

Tschudin noted that investment flows are being redirected as a result of AI adoption, which can lead to difficulties for other parts of the economy. She specifically mentioned the example of chip shortages causing prices to rise.

However, Tschudin also suggested that in the long term, AI could potentially lower prices by increasing productivity and making goods cheaper. But she cautioned that this would require a regular decline in prices over time.