Can AI boom make everything more expensive? IMF’s chief economist says the inflation story is just beginning

Artificial intelligence is now a new driver of inflation, according to IMF Chief Economist Pierre-Olivier Gourinchas. He explains that AI is increasing costs for technology hardware and simultaneously making consumers wealthier through booming stock markets, leading to higher spending. This dual impact on both supply and demand channels is creating fresh inflationary pressures, a concern for the global economy.