According to CoinMeta, the Bank of Japan stated on Monday that global demand related to artificial intelligence (AI) may pose sustained upward pressure on inflation in Japan, indicating that the bank is increasingly concerned about inflation risks, which could further strengthen the case for a recent interest rate hike. The Bank of Japan pointed out that in the medium to long term, the application of AI should boost productivity and put downward pressure on prices as businesses and workers gradually adapt to AI technology. However, in the short term, the inflationary impact of the investment boom driven by AI may exceed the benefits of increased productivity. This is because more robust investment activities will boost demand and drive up prices. The report said that the spillover effects of AI-related demand will persist for some time, and coupled with the increase in import costs due to the depreciation of the yen, domestic inflation in Japan may continue to face sustained upward pressure.