Technological progress brings deflation, and artificial intelligence may be the key to solving the current high inflation.
On Wednesday, Larry Fink, the founder of BlackRock, said to investors:
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The decline in productivity has always been a core issue in the global economy and is the main reason why the United States is facing such stubborn inflation.
Artificial intelligence is the key technology that can reduce inflation. It has huge potential to improve productivity and can change the profit margins of various industries.
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It is worth mentioning that technological progress is generally considered to bring deflation because it improves productivity, reduces energy and material consumption, and improves efficiency.
In addition, the overnight Fed paused its rate hike as expected but hinted at two more hikes. Fink has repeatedly warned:
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High inflation may force the Fed to resume rate hikes later this year.
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Fink said that BlackRock is currently the world's largest asset management company and will continue to look for ways to expand its global footprint and the impact of its technology products in the private equity market.
In the past decade, BlackRock's scale and influence have continued to grow, with assets under management reaching $9.1 trillion at the end of March and net inflows of $110 billion in the first quarter. The company's goal is to double its private equity market revenue from $1 billion in 2022 to about $2 billion in the next five years.

Larry Fink said that AI is the key to reducing inflation. It has enormous potential to increase productivity and can change the profit margins of various industries.

BlackRock CEO: AI is the key to reducing inflation.