AI productivity gains may not curb inflation, IMF's Tenreyro warns

LONDON, Aug 20 : Even if artificial intelligence boosts productivity, it may not lower inflation, the International Monetary Fund's new chief economist Silvana Tenreyro warned in research published by Bank of England staff on Thursday.At first glance, higher economic productivity — producing more output for the same amount of inputs — looks as if it should lead to lower prices.Federal Reserve Chair Kevin Warsh has said he hopes that the rollout of artificial intelligence will allow the U.S. economy to grow faster without causing higher inflation.But Tenreyro, in an article co-written with BoE economist Jenny Chan and doctoral researcher Ludovica Ambrosino, said the inflation impact of highly anticipated productivity gains was ambiguous. "Business investment and household spending (can) bot