In remarks during a visit to the Chamber of Commerce and Industry of Southern Sweden, Sveriges Riksbank First Deputy Governor Aino Bunge assessed artificial intelligence’s economic and financial implications and reiterated her September view that stronger activity and elevated inflation pressures would probably justify raising the policy rate before the end of 2026. She said the scale of tightening remains uncertain and monetary policy should proceed based on incoming data. AI is already supporting investment and growth and could raise productivity, but its use remains at an early stage. Companies have not yet changed workforce levels because of AI, although some are reconsidering future recruitment. Bunge warned that AI companies are increasingly using loans and more complex financing structures to fund substantial investment. If the technology falls short of expectations or some companies cannot keep pace, stress could reach Swedish financial firms through equity and bond holdings and through a broader decline in risk appetite. AI driven cyberattacks also pose a growing systemic threat because an incident at one organization can spread across the financial system. Bunge called for high cybersecurity standards and controlled use of AI in defensive work. On the domestic outlook, she pointed to a broad economic upturn and early labor market improvement, while spare capacity remains and supply disruptions from the war in the Middle East and a weaker krona create upside inflation risks. The Executive Board’s next monetary policy meeting is scheduled for Nov. 3.

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