Artificial intelligence could create upward inflationary pressure in the short or medium term by redirecting investment and contributing to shortages of items such as chips, Swiss National Bank governing board member Petra Tschudin said in an interview published on Friday. Over a longer horizon, AI could lower prices by raising productivity and making goods cheaper, although Tschudin said repeated price declines would be needed for that effect to produce deflation in annual inflation data. The Swiss National Bank is studying AI's impact on prices, which it says could work in either direction. The bank's latest forecast sees annual inflation remaining within its 0% to 2% target range through the first quarter of 2029. Tschudin said the projection assumes interest rates remain unchanged and should not be interpreted as a commitment to keep the policy rate, currently 0%, unchanged for three years. The bank does not publish interest-rate forecasts and will adjust monetary policy if it receives relevant new inflation information. International Monetary Fund new chief economist Silvana Tenreyro also warned in research published by Bank of England staff that stronger productivity from AI may not reduce inflation.