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AI is adding to inflation, not lowering it, Goldman Sachs says

Business Insider·Naomi Buchanan·27 days ago
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3 ways AI is adding to inflation, according to Goldman Sachs Bloomberg/Getty Images Experts expect AI to fuel disinflation, but so far it's doing the opposite, Goldman Sachs said. AI is adding to the inflation weighing on US consumers, not offsetting it. Computer parts, AI upcharges, and pricy power bills are among the AI inflation inputs flagged. AI is contributing to mounting inflationary pressures that are weighing on US consumers, Goldman Sachs said. It's been predicted that the technology could rewire the global economy by fueling transformational productivity gains and spurring a wave of disinflation, but so far, it's actually adding to inflation, Goldman said. "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," the economists wrote.…

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