On September 21, Panetta, a member of the Governing Council of the European Central Bank (ECB) and the Governor of the Bank of Italy, stated on Monday that central banks must clarify how the economic benefits generated by artificial intelligence (AI) are allocated. This is because the way these benefits are distributed will have a significant impact on aggregate demand and inflation. He emphasized that AI is set to revolutionize productivity and economic growth, as well as reshape the labor market, financial systems, and payment mechanisms.
Panetta further explained that if AI predominantly generates new tasks and boosts workers' expectations for future income, aggregate demand could surge prematurely, thereby prolonging inflationary pressures. On the other hand, if automation becomes the dominant trend, it could lead to weaker consumption, which in turn might accelerate the inflation-reducing effects of AI.