MNI BRIEF: AI To Restrain Inflation Over Long Run - Fed's Cook

Artificial intelligence is likely to boost productivity and could help the economy achieve higher growth while reducing inflationary pressures over the long run, Federal Reserve Governor Lisa Cook said Thursday, calling the technology transformative for research and policymaking. 

The ability of AI to process and analyze ever larger amounts of data will likely lead to advances in scientific research and innovation, further amplifying its effect on productivity, she said. 

"It is possible that the disinflationary effect of AI could, over time, counter any factors putting upward pressure on inflation," she said, even as it "could boost prices in the interim, as adoption of the technology might require a surge in aggregate investment."

The technology will allow workers to be more productive while also changing the tasks associated with any given job, leading to a certain set of jobs to be replaced while others are created, she said in remarks prepared for an economic conference. 

"AI will both change the economy for which we set policy and change how we can best operate as a central bank." (See: MNI INTERVIEW: Fed To Cut Twice In 2025 On Weak Growth-Haslag)