We are pleased to announce a new blog post on the SUARA SEACEN Blog:
AI Adoption, Regional Productivity, and Inflation: Evidence from Korea and Implications for Monetary Policy
by Cynyoung Park and Kwanho Shin
We are pleased to announce the latest blog post on Suara SEACEN:
This blog examines whether the early adoption of artificial intelligence (AI) in Korea has already affected productivity and inflation. The overall impact on inflation depends on the timing of supply-side productivity improvements versus demand-side expansion, as well as how households and firms form expectations about AI’s future benefits. While it may be too early to tell, AI may be inflationary before it becomes productivity-enhancing. Central banks should remain cautious about prematurely incorporating anticipated AI gains into policy decisions.
Click here to read.
