ECB executive board member and Bank of Italy governor PANETTA said on Monday
central banks need to understand who captures AI-driven gains because their
distribution will affect aggregate demand and inflation. He said AI will change
productivity and growth and reshape labor markets, financial markets and
payment systems. If AI mainly creates new tasks and raises market expectations
of future labor income, aggregate demand could rise before full productivity
gains materialise, prolonging inflationary pressure. If automation predominated
and suppresses consumption, AI’s disinflationary effects could show up sooner.
