At the same time, AI could eventually increase productivity and capacity, expanding supply and helping ⁠contain inflation. "By simultaneously affecting demand and supply, AI blurs cyclical signals," the BIS said, ​warning that ​this could complicate central banks' assessment of underlying ​economic conditions and the calibration of ‌monetary policy. One immediate risk is misreading strong growth driven by AI investment. Conversely, productivity gains could mask underlying demand pressures, making inflation trends harder to interpret. The BIS stopped ‌short of making policy recommendations but said central banks would need to disentangle ​temporary investment booms from lasting productivity improvements to avoid the risk of "policy miscalibration".