Fed’s Mary Daly says the AI pipeline will keep flowing, even if it slows

San Francisco Fed President Mary Daly said the AI investment pipeline will keep flowing even if it slows, signaling that AI spending remains a durable force in the economy. Daly's remarks point to AI's enduring impact on economic policy, including potential long-term deflationary effects that could offset current inflation concerns. The comments matter because they suggest policymakers are weighing AI-driven productivity and price dynamics as a structural factor rather than a passing trend. What to watch next is whether incoming inflation and productivity data bear out that deflationary thesis, and how it shapes the Fed's rate path.