- AI offers tools to process vast datasets.
- These can help, among other things, detect previously unseen patterns and improve predictive accuracy
- Machine learning could identify inflationary pressures, labor-market shifts or structural breaks in the economy faster
- The technology would not substitute for human expertise
- For more here
Nagel didn’t touch on monetary policy, but he highlighted how AI could help central banks identify problems in the economy faster and therefore improve policymaking. Much like technology helped improving inventory management for companies and smooth the inventory cycles.
There’s lots of fear-mongering going on about AI replacing humans, but I’ve been personally seeing it just as a new tool to improve productivity. Technology has always changed our lives and the labour market, but it didn’t lead to high unemployment.
People were fearing machines taking their jobs (see the Luddites) but eventually it just created new jobs. Things change and we keep on adapting
ECB’s Nagel: AI offers tools to process vast datasets and can improve predictive accuracy
