Bank of Japan Deputy Governor Shinichi Uchida stated that AI is regarded as a massive positive demand shock, exerting upward pressure on both the economy and prices.

According to a speech transcript released by the Bank of Japan, Uchida noted that AI may also influence the supply side, potentially generating positive effects by boosting productivity and promoting capital accumulation, which in turn could affect the natural rate of interest.

He added that it remains unclear to what extent AI will impact the economy within the traditional policy framework.