AI Could Push Up Inflation, Swiss Central Bank Says
Swiss National Bank (SNB) governing board member Petra Tschudin believes artificial intelligence (AI) could drive up inflation in the short term. Speaking with Finanz und Wirtschaft, Tschudin noted that investment flows are being redirected, leading to adjustments and difficulties for the broader economy.
She said AI can cause shortages, such as those seen in the semiconductor industry, which can lead to price increases. In the short or medium term, this could result in upward inflationary pressure, Tschudin explained.
However, Tschudin also stated that AI may have a deflationary effect in the longer term by increasing productivity and making goods cheaper. But for this to happen, she noted that productivity gains would need to be consistent and repeated regularly on an annual basis.