A senior Bank of Australia official said that at a time when policymakers have raised interest rates sharply to cope with inflation, the surge in investment in artificial intelligence-related fields will further stimulate economic demand. In a speech on the potential impact of AI on Monday, Reserve Bank of Australia Assistant Chairman Sarah Hunt said that AI is “one of the most important technological developments of our time” and has begun to reshape the economy. She said, “In the short term, the positive impact on aggregate demand combined with the economy's current supply capacity will put some upward pressure on inflation.” She also pointed out, “According to some contact companies, the construction of data centers is increasing demand pressure on some construction technology jobs that are already in short supply.” In the Q&A session after the speech, Hunter said that rising construction costs are a channel for AI demand to be transmitted to the consumer price index. To a lesser extent, rising prices for new phones and game consoles are also driving up CPI, she added.

A senior Bank of Australia official said that at a time when policymakers have raised interest rates sharply to cope with inflation, the surge in investment in artificial intelligence-related fields will further stimulate economic demand. In a speech on the potential impact of AI on Monday, Reserve Bank of Australia Assistant Chairman Sarah Hunt said that AI is “one of the most important technological developments of our time” and has begun to reshape the economy. She said, “In the short term, the positive impact on aggregate demand combined with the economy's current supply capacity will put some upward pressure on inflation.” She also pointed out, “According to some contact companies, the construction of data centers is increasing demand pressure on some construction technology jobs that are already in short supply.” In the Q&A session after the speech, Hunter said that rising construction costs are a channel for AI demand to be transmitted to the consumer price index. To a lesser extent, rising prices for new phones and game consoles are also driving up CPI, she added.