The development of artificial intelligence is the manifestation of productivity progress but the economic effect on its extensive application needs to be deeply studied. Based on its substitution role of labor, this paper introduces artificial intelligence investment into dynamic stochastic general equilibrium model to examine the influence of its development on inflation dynamics by comparative steady state analysis and short-term dynamic analysis. Steady state analysis shows that both of the rise of its investment efficiency and the enlarging of its using scope promote labor productivity and output, but it can’t affect long-run or tendency inflation. At the initial stage of its development, the development of artificial intelligence can cause the decline of practical wage, however, at its high-level stage, its development can give rise to the rise of practical wage. Short-run dynamic analysis argues that the promotion of its development, whether its investment efficiency rises or its using scope enlarges, will weaken the response of inflation and practical marginal cost to exogenous shocks, such as preference and technology shocks.Its development can weaken the connection of the change between inflation dynamics and practical economic activities. The reason for this result is that its substitution of labor makes wage adjustment no longer the necessary choice for the response to exogenous shocks and further changes the transmission mechanism of the impact of exogenous shocks on inflation by affecting wages. Thus, while we develop the artificial intelligence to boost productivity and output, we should face the new challenge during the process of accurate prediction of policy regulation objective variables of inflation and so on and the validity for policy adjustment and implementation and provide new issues for studying financial theory.