ECB Governing Council Emmanuel Moulin said that the impact of artificial intelligence on inflation is difficult to predict and may increase price fluctuations. “Since artificial intelligence acts on both supply and demand variables, the overall impact on inflation is particularly difficult to predict,” Moulin said. “Furthermore, the impact may be reflected not only in the level of inflation, but also in fluctuations in inflation.” The Bank of France governor said that due to the increase in capital expenditure, artificial intelligence may have an inflationary effect in the short term, but as productivity increases, it may curb inflation later. Moulin said that currently artificial intelligence has limited impact on ECB policy, and artificial intelligence is only one of many structural changes. Others include population aging and climate change. “This is an important factor to consider when understanding the supply situation, but it does not have specific characteristics sufficient to motivate us to adjust the response function of monetary policy,” Moulin said. The Bank of France official also said that the impact of artificial intelligence on the labor market is “limited and uncertain,” but an analysis of French data shows that judging from a four-year time span, the use of artificial intelligence should have a positive impact.

ECB Governing Council Emmanuel Moulin said that the impact of artificial intelligence on inflation is difficult to predict and may increase price fluctuations. “Since artificial intelligence acts on both supply and demand variables, the overall impact on inflation is particularly difficult to predict,” Moulin said. “Furthermore, the impact may be reflected not only in the level of inflation, but also in fluctuations in inflation.” The Bank of France governor said that due to the increase in capital expenditure, artificial intelligence may have an inflationary effect in the short term, but as productivity increases, it may curb inflation later. Moulin said that currently artificial intelligence has limited impact on ECB policy, and artificial intelligence is only one of many structural changes. Others include population aging and climate change. “This is an important factor to consider when understanding the supply situation, but it does not have specific characteristics sufficient to motivate us to adjust the response function of monetary policy,” Moulin said. The Bank of France official also said that the impact of artificial intelligence on the labor market is “limited and uncertain,” but an analysis of French data shows that judging from a four-year time span, the use of artificial intelligence should have a positive impact.