AI gains’ distribution will shape inflation, ECB’s Panetta says

MILAN, Sept 21 (Reuters) – Central banks need to understand who benefits from artificial intelligence-driven gains, as their distribution will help shape aggregate demand and inflation, European Central Bank Governing Council member Fabio Panetta said on Monday.

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• AI is set to transform productivity and growth, labour and financial markets, and payment systems, Panetta said.

• If AI mainly creates new tasks and raises expected labour income, demand could increase before AI’s full productivity benefits materialise, prolonging inflationary pressures, he added.

• Panetta, who is also governor of the Bank of Italy, was speaking at an event hosted by the National Bank of Ukraine.

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• Credibility is an essential asset of every central bank, but how it is built and preserved depends on the nature of the challenges faced, he said.

• Central banks cannot remain on the sidelines, Panetta said, adding that understanding changes underway is increasingly essential to central bank credibility.

• According to Panetta, if automation dominates, weaker consumption could cause the disinflationary effects of AI to emerge sooner.

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(Reporting by Sara Rossi; Editing Gianluca Semeraro and Jamie Freed)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published September 21, 2026 at 4:01 AM.