Milan, Sept. 21 (LaPresse) – “The United States seems to be moving faster than Europe, but the gap is not immutable. Even if Europe were not to become a leader in AI development, it has the potential to adopt and exploit these technologies as rapidly as other advanced economies. Differences in adoption rates could therefore have significant consequences for growth.” This was stated by Bank of Italy Governor Fabio Panetta at the 10th Annual Research Conference of the National Bank of Ukraine and Narodowy Bank Polski in Kyiv, Ukraine. Estimates by the Bank of Italy “suggest that countries that integrate AI more rapidly could secure a lasting advantage in terms of productivity, expand their shares in global markets and attract greater investment and capital. Others could see their relative competitiveness decline. Differences in productivity and demand would also affect trade flows, capital flows and relative prices. Exchange rates would be part of this adjustment process and could become more volatile during the transition. The direction of exchange-rate movements, however, is uncertain: depending on the effects on domestic demand and external balances, currencies could either appreciate or depreciate. For Europe, these external adjustments could be particularly important, given its deep integration into global trade and capital markets. AI could therefore influence monetary policy not only through productivity and labor markets, but also through terms of trade and exchange rates.”
AI, Panetta: “For countries that integrate it, productivity gains and more investment”
Milan, Sept. 21 (LaPresse) – “The United States seems to be moving faster than Europe, but the gap is not immutable. Even if Europe were not to become a leader in AI development, it has the potential to adopt and exploit these technologies as rapidly as other advanced economies. Differences in adoption rates could therefore have significant consequences for growth.” This was stated by Bank of Italy Governor Fabio Panetta at the 10th Annual Research Conference of the National Bank of Ukraine and Narodowy Bank Polski in Kyiv, Ukraine. Estimates by the Bank of Italy “suggest that countries that integrate AI more rapidly could secure a lasting advantage in terms of productivity, expand their shares in global markets and attract greater investment and capital. Others could see their relative competitiveness decline. Differences in productivity and demand would also affect trade flows, capital flows and relative prices. Exchange rates would be part of this adjustment process and could become more volatile during the transition. The direction of exchange-rate movements, however, is uncertain: depending on the effects on domestic demand and external balances, currencies could either appreciate or depreciate. For Europe, these external adjustments could be particularly important, given its deep integration into global trade and capital markets. AI could therefore influence monetary policy not only through productivity and labor markets, but also through terms of trade and exchange rates.”