UPDATE 1 — China central bank adviser says AI could deepen supply — demand imbalance

(Adds central bank adviser quotes, context) BEIJING, Sept 19 (Reuters) — Artificial intelligence could deepen and prolong China's strong supply and weak demand imbalance, a central bank adviser said on Saturday, adding to calls for policies that bolster consumption and repair balance sheets across the economy. China's policymakers have been trying to revive domestic demand amid a prolonged property downturn, local government debt pressures and cautious household spending. A global AI boom has helped support China's exports this year, cushioning the economy against weak domestic demand. "As AI is deployed more widely and innovation accelerates, the imbalance between strong supply and weak demand could worsen," said Huang Yiping, a member of the People's Bank of China's monetary policy committee, at an economic forum held in Beijing. "The contradiction between total demand and total supply may not disappear quickly in the short term, and may even persist for some time," he added. The United States and some trading partners have urged Beijing to rebalance its economy towards consumption and away from a reliance on exports, arguing that excess industrial capacity is flooding overseas m