Interesting thoughts from FT:
This raises the uncomfortable question: if wage growth is already too soft for the new core inflation arithmetic, what happens if productivity-enhancing or labor-substituting technologies accelerate? That brings us to generative and agentic AI. … If the market begins to internalize the possibility that AI could soften labor demand before it meaningfully lifts productivity, then the risk to inflation is skewed decisively lower. And the current pricing of inflation compensation does not fully reflect these downside risks. Moreover, at a certain point, the evolving AI shock should become a positive productivity shock, which should be disinflationary, at least in the medium term; this point is more compelling than the more dire negative aggregate demand scenario laid out in some of the more alarming prognostications. submitted by /u/One_Perception_7979
Originally posted by u/One_Perception_7979 on r/ArtificialInteligence
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