""We expect artificial intelligence to deliver large productivity gains over the next several years, boosting the economy's potential growth rate and putting downward pressure on production costs. So far, however, AI is boosting US inflation.""
""Once AI-related productivity gains become more widespread, we expect higher productivity growth to prove disinflationary at first in line with the typical experience in prior episodes of technological innovation...""
""Strong demand for AI infrastructure has raised the price of some key electronics inputs, which has increased computer accessories prices and will likely boost smartphone and computer prices in coming months.""
Goldman Sachs indicates that AI is currently adding to inflation in the US, despite predictions of future disinflation from productivity gains. The technology is expected to enhance the economy's growth rate and lower production costs over time. However, in the short term, AI is driving up prices, particularly in electronics due to increased demand for AI infrastructure. Bank of America suggests that these productivity gains may also affect investor perceptions regarding economic impacts from global events like the Iran war.
Read at www.businessinsider.com
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