St. Louis Fed economists warn that AI hype is driving up prices now, regardless of whether the technology delivers real economic benefits later

Economists from the St. Louis Federal Reserve caution that excessive AI enthusiasm could trigger inflationary pressures in the near term

The concern is that companies and investors are inflating prices and valuations based on AI promises that may never materialize

Rising costs driven by AI hype could persist even if the technology fails to generate promised productivity gains and returns