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The data center buildout required to power artificial intelligence is generating inflation pressure today, while the cost reductions tech leaders promise depend on corporate adoption that has been slow to materialize.
The expensive side of the AI trade is in current price data. The deflationary argument tech leaders are making Tech leaders have argued that artificial intelligence will drive costs lower.
Businesses deploying AI tools at scale, the reasoning goes, gain enough productivity to eventually compress prices across the economy.
If adoption reaches the pace the optimist case requires, the Federal Reserve would receive disinflationary pressure from the private sector at exactly the moment it needs it.
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