Edward Robinson, Chief Economist of the Monetary Authority of Singapore, said at the Beijing Financial Street Forum on October 20 that once artificial intelligence brings broad-based productivity gains, central banks could ease monetary policy, but currently the AI investment boom is boosting demand and policy should remain appropriately restrictive.

He pointed out that AI-related investment is driving economic growth, but the technology has not yet produced significant productivity improvements across the broader economy, and he called for a gradual, data-driven approach.

The MAS tightened monetary policy in April and July 2026 due to rising inflation risks, and left policy unchanged in October. A statement on October 14 warned that if the AI boom generates broader economic spillovers and pushes up unit labor costs, domestic inflation could remain elevated.

Robinson said that AI-driven electronics account for more than 70% of this year’s export growth in Asia, but the industry growth producing AI-related technologies mainly stems from increased investment and more intensive use of existing resources, rather than efficiency improvements.

He cited an OECD estimate saying that if adopted broadly enough and investment is appropriate, AI could raise annual total factor productivity growth by up to 0.6 percentage points.