BOJ says AI boom may have eased financial conditions, warns of market risks
Bank of Japan Deputy Governor Shinichi Uchida said the global AI boom may have eased financial conditions by stoking demand and boosting asset prices, but warned of the risk of a market pullback if expected profits fail to materialize.
“It is a big positive demand shock, which has put upward pressure on the economy and prices,” Uchida said on worldwide AI adoption in the text of a speech on the central bank’s website on Monday.
The technology could also raise productivity and enhance capital stock accumulation, which in turn might affect a country’s natural rate of interest, he said.
