Federal Reserve Chairman Kevin Walsh said on Friday that artificial intelligence technology is “the most far-reaching change” he has seen on the global economy. He predicts that the overall impact of AI will improve, but the development path will be full of twists and turns. At the International Monetary Fund-World Bank annual conference in Bangkok, he said, “I think the advent of this new technology is probably the most significant change I have seen in my life to affect the US and the global economy.” Walsh said that as the head of the Bank of America, he views the macroeconomic impact of this technology with a cautious and responsible attitude: in the short term, it will drive up inflation through demand-side effects, but it is expected to cause a favorable supply-side shock in the long run. He acknowledged that the AI investment boom will drive up prices in the short term, but “in the long run, it will definitely bring huge benefits to the global economy and the US economy.” As an example, he said that in the future, the Federal Reserve is expected to use AI to better analyze data to formulate monetary policy, which is one of the positive values of AI. He also reiterated his previous view that this technology “can increase productivity in economies and countries that make good use of it.”

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