Can artificial intelligence increase inflation? Zahra Fakhri.
Artificial intelligence is supposed to reduce production costs and make goods and services cheaper by increasing productivity; But before this promise is realized, will it become a cause of increasing inflation? The wave of investments in artificial intelligence has increased the demand for chips, electricity and materials needed for data centers. Economists estimate that AI-related price pressures could add about half a percent to annual US inflation. This situation causes the central banks to face a dilemma: maintaining high interest rates to curb inflation, or reducing them to facilitate the financing of investments; A decision that both parties can influence the course of the economy. In this video we will examine why a technology that should reduce costs in the long term may make it difficult to control inflation in the short term.