AI TRENDS | AI Era Mitigates Inflation Impact from Middle East Conflict, Says Norwegian Wealth Fund CEO

On April 28, Jin10 reported that Nicolai Tangen, CEO of Norway's sovereign wealth fund, stated that the advent of artificial intelligence is helping to offset some inflationary effects caused by the surge in energy prices due to the Middle East conflict, thereby aiding the market in absorbing shocks. In an interview on Tuesday, Tangen remarked, "It's quite remarkable because, given the current situation in the Middle East, one would expect this to translate into higher energy prices, fuel prices, and fertilizer prices." He noted, "To some extent, this has already started impacting Asia. We anticipate it will lead to price increases in Europe and the United States. This is typically unfavorable for the market. However, the market is indeed coping calmly." Tangen expressed surprise that financial markets have not experienced significant disruptions. "Inflation is usually a factor that hits the market hard. This is something we must closely monitor. On the other hand, we have AI, which we believe has a deflationary effect. I think this is precisely what the market is currently digesting."