[Bank of Japan Deputy Governor Shinichi Uchida: AI is both a significant positive demand shock and may reshape core parameters of monetary policy] Bank of Japan Deputy Governor Shinichi Uchida stated that artificial intelligence has become a key topic of discussion in monetary policy meetings of central banks, including the Bank of Japan. He pointed out that the adoption of AI has both positive and negative impacts on productivity and the labor market: On the demand side, AI represents a significant positive demand shock, exerting upward pressure on the economy and prices; on the supply side, AI may have positive effects by enhancing productivity and promoting capital stock accumulation. Preliminary observations suggest that AI's impact on the demand side appears to manifest first, generally making financial conditions more accommodative. However, if corporate profits fail to keep pace, there remains a risk of correction (retracement). He also emphasized that AI will influence several core parameters in monetary policy formulation, including the output gap, financial conditions, and the 'star variables' that represent the long-term equilibrium of the economy, such as the natural rate.