At a time when supply chain disruptions, labor market shortages, and monetary policies have driven up the cost of goods/services, we are not talking about AI’s likely disinflationary impact
Very insightful since we dont generally think about the deflationary angle when talking about Gen AI. I wonder how this will impact the pricing models of enterprise SW and HW.
But Professor no body is sure if AI displaces labor market what will happen to consumption so even if AI lowered the prices there will be no demand for those products.
Excellent point, Vaibhav. I think all the above assumes that labor market shock of AI can be absorbed in the long run (which is unclear). more on that issue in a companion post I did here https://hosanagar.substack.com/p/economic-impact-of-ai-labor
Very insightful since we dont generally think about the deflationary angle when talking about Gen AI. I wonder how this will impact the pricing models of enterprise SW and HW.
But Professor no body is sure if AI displaces labor market what will happen to consumption so even if AI lowered the prices there will be no demand for those products.
Excellent point, Vaibhav. I think all the above assumes that labor market shock of AI can be absorbed in the long run (which is unclear). more on that issue in a companion post I did here https://hosanagar.substack.com/p/economic-impact-of-ai-labor