Bank of Canada: artificial intelligence may bring inflationary pressure

Tiff McCollum, governor of the Bank of Canada, said investment in artificial intelligence could lead to higher inflationary pressures in the short term and raise financial stability concerns. Artificial intelligence could also affect how companies set prices. There is already evidence that more digitised companies adjust prices more frequently than less digitised ones.
"Central banks need to keep a close eye on how artificial intelligence affects inflation, both indirectly through aggregate demand and supply, and directly through pricing behaviour," he said.