AI gains' distribution will shape inflation, ECB's Panetta says
MILAN, Sept 21 : Central banks need to understand who benefits from artificial intelligence-driven gains, as their distribution will help shape aggregate demand and inflation, European Central Bank Governing Council member Fabio Panetta said on Monday.
- AI is set to transform productivity and growth, labour and financial markets, and payment systems, Panetta said.
- If AI mainly creates new tasks and raises expected labour income, demand could increase before AI's full productivity benefits materialise, prolonging inflationary pressures, he added.
- Panetta, who is also governor of the Bank of Italy, was speaking at an event hosted by the National Bank of Ukraine.
CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less • Credibility is an essential asset of every central bank, but how it is built and preserved depends on the nature of the challenges faced, he said. • Central banks cannot remain on the sidelines, Panetta said, adding that understanding changes underway is increasingly essential to central bank credibility. • According to Panetta, if automation dominates, weaker consumption could cause the disinflationary effects of AI to emerge sooner.
- Credibility is an essential asset of every central bank, but how it is built and preserved depends on the nature of the challenges faced, he said.
- Central banks cannot remain on the sidelines, Panetta said, adding that understanding changes underway is increasingly essential to central bank credibility.
- According to Panetta, if automation dominates, weaker consumption could cause the disinflationary effects of AI to emerge sooner.
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Get our pick of top stories and thought-provoking articles in your inbox
Stay updated with notifications for breaking news and our best stories
Join our channel for the top reads for the day on your preferred chat app
