Will AI Make Groceries Cheaper Down The Track?

It's a question on everyone's mind: what will AI mean for our everyday lives, and more importantly, our wallets? A key figure from the US central bank, Mary Daly of the San Francisco Federal Reserve, recently weighed in on whether Artificial Intelligence will affect the price of goods and services soon.

Her take is that while AI—that's computer software that can learn and solve problems like humans—is poised to make businesses more efficient, we shouldn't expect it to bring down our grocery bills or petrol prices anytime soon. She suggests the big economic changes from AI are still five to ten years away from really kicking in. So, for now, the price of your weekly shop or a coffee won't be changing because of AI.

Daly believes that over the long term, AI will act like a helpful assistant for businesses, streamlining tasks and cutting down waste. When businesses become more productive, they can sometimes afford to lower their prices, which is good news for consumers. Think about how technology has made things cheaper in the past, like getting instant information online compared to buying encyclopedias.

However, it's a long game. The technology needs to mature, and businesses need time to fully adopt it and rework how they operate. This echoes what many experts are saying: AI is powerful, but its full impact on society and our economy isn't an overnight change. It's a gradual shift that will unfold over the coming years.