AI will be deflationary in the long-term, says US investment giant | The Business | ABC NEWS
President of US investment giant Northern Trust Asset Management, Michael Hunstad says AI may be the biggest positive supply shock that the global economy has ever seen.
He says those adopting AI now are already starting to see some pockets of productivity gains – albeit hit and miss, but US technology firms are seeing most of the gains because they were the earlier adopters of AI. Dr Hunstad says they’re the first beneficiaries of AI.
He says he believes in the long-term, AI is going to be deflationary.
When asked, however, whether the cost of establishing data centres and buying into AI technology will make the fight against inflation and interest rate settings more difficult for business, he said: “I think over the short term that may be true, but over the longer term, I’m a firm believer that AI may be the biggest positive supply shock that the global economy has ever seen. Ultimately, that’s going to be deflationary in the context that is going to bring unit price costs down.”
Northern Trust Asset Management has $US1.8 trillion under management.
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