Are we seeing A.I silently aid inflation?

[Maslate]

AI and inflation are not on the same boat. Inflation has been here the whole time, even AI has not been known yet. But with AI existence, more technologies arise and more productions have sink in, and along with its huge, sudden demand, its also driving up prices high which is always expected in the long run.

For me, this is not all about inflation getting high, because inflation in reality is inevitably high. But more likely, this is just a reaction of the market from the immediate, intense demand for AI infrastructures, this is instead a demand driven inflationary force.

[Sammysmart001]

No doubt You have point about the short term cost. About electricity AI data centers do consume allot, abd funny enough Nvidia chips aren’t cheap. This all are the reason behold the rise of electricity bills.
Come to think of it if AI cut cost for a long run and they automate their works, this will help in other to reduce inflation later run.

My Question I would love to ask
For electricity consumption. AI or  Bitcoin mining, which of this consumes a lot of power

[Kelvinid]

AI is currently partnered with inflation but in a short-term inflationary pressure and long-term disinflationary force. These short-term inflationary pressures include infrastructure spend, market power and energy cost. The rapid demand of AI infrastructure is current adding to price pressures.

However, AI also aims for long-term disinflationary potential through productivity gains, efficiency in services and wage stabilization. But for now, this isn't realized yet, and people are more likely seeing the inflation getting more increased than decreasing its costs.

[blockman]

The emergence of AI really made the inflation quite higher. It's true about the demand for the chips and it has resulted to spike in the price of RAM and GPUs as well. But it won't be forever like that because there will be the time that the demand they have spiked will start to decrease. Like for the news like this (OpenAI employees cashed out $6.6B in stock sales last fall, earning up to $30M each: report).
We see that the peak of it was probably have been seen and the overvaluation that has given to these AI projects have been so vast.
But this is the problem here, when inflation hits and everything rose. It's now harder to curb it and send the prices back from before.

[Rruchi man]

This is exactly what we're seeing from A.I today;  data centers are consuming and demanding a high volume of electricity as we're also seeing tech firms spending so much to achieve s certain productivity.

If Companies are replacing workers with AI, they should have enough money from not having to pay salaries to be able to afford the high electricity cost.

Inflation may not really be favored because with many workers laid off work, they will not be able to afford many things if the cost is high, so prices of things will have to come down so people can afford it.

[Asiska02]

When an innovation like this is posed, you can never take out the disadvantages it will pose in using them. Just like how you’ve spotted out the disadvantages and how it won’t be of great help to some companies facilities trying to use them, it’ll be of help to some when compared to how much they spend in such companies in the past before the introduction of the AI. Yes, AI may cause inflation, but don’t you also see the advantages it will bring to the companies using them despite this. It is just a way for you to balance things up and go for what works best for your company that improves productivity and overall return on investment.

[STT]

The stock market creates inflation is an argument I've seen before, its probably been a feature of every easy monetary policy country in criticism of the imbalance in currency flows between the main economy and that which benefits from cheap money directly, cheap debt etc.
  This sounds alot like this, pockets of inflationary prices popping up can be chased as the cause while only being a symptom of the underlying problem.  Housing also has been accused of inflation creation because people are outbidding each other for limited stock, with a growing population and dense cities this can easily reach orders of magnitude higher.

  None of these things are creator of inflation, the only true source is the money production and rates set to allow distribution in an economy.  Modern economic and macro economic policy favors a light rate policy where companies are less likely to fail under debt servicing, this also allows too much money into the economy and prices drift upwards.  The inflation helps companies service debt, hiding problems that might appear otherwise, its favored by politics but hurts normal workers who lose parts of their wages to inflation between any pay rise.

   Sophisticated traders and those trading internationally maybe in commodity markets can easily adjust prices and receive foreign currency regularly that keeps their income high while costs nationally may be lower.  The reason AI is not the cause is that typically it aids efficiency in its purpose and utility, this deflationary and you can apply this to all tech in that it allows more to be done with less resources.   However the large amount of spending, if it never returned any positive work done would represent loss and some innovation does fail in this way in every tech advancement.

[BitDiscussion]

When demand is high and supply is less the prices will automatically raise even if the supply is more the prices will increase. The solar panels are everywhere now in extreme quantity and different companies but the prices are still going up because of its demands. Although AI is new in the market and many complications are solved by AI free of cost but it might not be free in upcoming year or two because of its demand. And those AI tools which are supplied via paying will double or triple in the next decade. Take advantage until it’s too late.

[Sammye3]

Does AI really have anything to do with inflation? I dont think so.
AI is the new generation that has made connectivity, productivity and efficiency in the technology sector, though at the expense of so many others job. As much as AI has helped improve the standard of lives, we can't totally ignore the disadvantages it brings. People may become too dependent on AI that they lose the ability to reason for themselves analyze without the scrutiny of AI and that would be a major problem.

AI is automated and works based on inputs and collected data so it could be prone to hacking and other data breach as well but I dont see how it affects inflation.

[Jewan420]

I do not see any direct relationship between AI and inflation. Every technology has its costs, but there is also a way to earn money from it and there are benefits. Even inflation is not new, inflation was there even before the invention of AI technology and was increasing, it still is. But AI has brought us more benefits.

AI is one of the discoveries in the development of enabling technology that has brought productivity, efficiency and speed to the industry. AI also has negative aspects that we can never ignore. Layoffs and increasing unemployment in the workplace are one of the negative aspects of this industry. Due to the increase in electricity demand, the pressure on the electricity sector is increasing and AI is getting used to living a life of dependence. People are losing their skills day by day and trying to become AI operators, which is a negative aspect. Although there are other negative aspects of AI, the point you are mentioning may not be correct or slightly correct.

[Yeesha]

I do not see any direct relationship between AI and inflation. Every technology has its costs, but there is also a way to earn money from it and there are benefits. Even inflation is not new, inflation was there even before the invention of AI technology and was increasing, it still is. But AI has brought us more benefits.

AI is one of the discoveries in the development of enabling technology that has brought productivity, efficiency and speed to the industry. AI also has negative aspects that we can never ignore. Layoffs and increasing unemployment in the workplace are one of the negative aspects of this industry. Due to the increase in electricity demand, the pressure on the electricity sector is increasing and AI is getting used to living a life of dependence. People are losing their skills day by day and trying to become AI operators, which is a negative aspect. Although there are other negative aspects of AI, the point you are mentioning may not be correct or slightly correct.

I don't think AI has anything to do with inflation, the increase in the rate of inflation is due to human factors, economic factors and also social factors. Several factors contribute to the increased in the rate of inflation, lack of important resources, equipment or services that are needed for growth of the community can hinder the growth and development of the country. If the farmers lack quality agricultural infrastructure, they will not have the ability to make enough products (low productivity), if the health workers don't have enough equipments, they will increase the amount of the commodity that is available, this is how the prices of commodities continue increasing day by day, and people are suffering from inflation, which resulted in emotional instability. I can't deny the fact that AI has caused decreased in the demand of human labour, but it can't eliminate it. But still human are finding their ways to make AI beneficial and productive to them, people monetise AI but some people used it in the wrong way.

[alastantiger]

What we're seeing with A.I  is ;a present hike in inflation presently

I disagree with your ideology of thinking that AI is aiding inflation, inflation happens naturally and it does not need any other new technology to affect it inflation happens when your money can no longer purchase the same value of what it could few years ago and this has nothing to do with the introduction of AI but the only way I can see this having a little bit of effect is when people get fired from their job because of AI replacing them and then the value of their saved money no longer has the same purchasing power that they had before since they are no longer receiving new wages but are stuck with the old saved income and trying to use it in the modern market.

[Ambatman]

As time goes on
The technology and resources needed for Ai are getting lesser as a result of better efficiency.
Ai creates output
Though it may seem like its creating like a form of demand fueled inflation
But there's are other more stringent causes of inflation that makes AI's feel like child play
Example money printing which translates to debt.

[uneng]

This is exactly what we're seeing from A.I today;  data centers are consuming and demanding a high volume of electricity as we're also seeing tech firms spending so much to achieve s certain productivity.

Then invest in electricity production. If there is demand for energy, think about the possibility of providing it. That is something anyone can do nowadays through solar systems. You produce a large supply of energy and then make an agreement with a company for, let's say, 10 years, which is the period of time they will be purchasing that production from you in a monthly basis. As an ecnouragement, you can sell energy cheaper than the local provider does.

I don't think AI is aiding inflation. AI is a gamechanger in the world, and the pros will overcome the cons quite soon, once people have the opportunity to become more independent on their daily life thanks to this technology.

[shinratensei_]

One thing for sure the infrastructure isn't ready for this much AI demand, RAM prices are doubling and GPU become scarce. AI that is supposedly here to make everything cheap is doing the opposite and company needs to compensate by raising the prices.
It requires 3-5 years to build a new fabs and they just started recently, If the new fabs couldn't help control the price of hardwares in the market AI will stay expensive to run. I don't know if that will affect inflation though since main culprit of inflation isn't really AI although it contributes a little.

[pawanjain]

In every generation there comes something that boosts inflation and I guess this time for AI.
AI requires data centres which requires land, electricity, GPUs, servers etc... all of these require critical resources.
Yes it has increased prices for all of these resources but at the same time AI is also being used at such a large extent.
I guess we need to sacrifice something in order to achieve something and here we are sacrificing the resources to achieve growth.

[Ishicryptic]

There is nothing new about inflation, before AI inflations have been and I'm sure that if there were nothing like AI there will still be inflation so we shouldn't worry that AI is skyrocketing inflation. I believe that nflation is caused basically from government policies and regulations that is why the rate of inflation defers in every country so in the tech sector AI can contribute just like other sectors to inflation.

Remember that if chips and other accessories that have to do with AI are adding in price other sectors will be decreasing as a result of AI increase, they would reduce in price so there is always a balance somewhere. If a government runs it's economy well and have a productive economy the rate of inflation will drastically reduce so AI on it's own shouldn't have the capability to drag noticeable inflation by itself.

[The Sceptical Chymist]

When we talk of Artificial Intelligence and it's intricacies, we tend to see technology stepping in to reduce cost and make life easier and safer.

Wat?

Sorry, had to stop reading right after that statement, as I suspect that AI might be making your posting habits easier*strike that, I sent back and read your post and I'm not even sure what your point is*--but for me and every single person I know, AI has been simply a fucking annoyance in their lives because of how the big companies who have massive internet presence have been using it. 

Not to mention google's AI gave me absolutely erroneous medical information about 3 weeks ago.  I don't use that function normally; I just tried it for one question.  You know what I think?  If they're giving out nonsensical (or just wrong) medical information, they should be open to lawsuits.  I'd be happy to see that company burn to the center of the earth.

The inflation aspect is complicated--or at least it has a lot of moving parts.  But why should I write an essay here when OP can't even arrive at a comprehensible point?