The Bank of International Settlements (BIS), also known as the central bank of central banks, has released its annual economic report for 2024. The report indicates that the global economy is recovering from COVID-19 and the war in Ukraine, but there are still several worrisome issues for the future. A key highlight of this report is the discussion on the impact of AI, which is expected to influence the future operations of central banks.
AI is projected to impact economic control by replacing some portions of the workforce, increasing productivity for certain workers, and creating new jobs, leading to a transformation in economic growth. One concern is that AI will enable companies to adjust prices more rapidly in response to the market, potentially affecting the inflation targets of various central banks.
As for the use of AI within central banks themselves, it can be utilized for economic forecasting at a faster pace, similar to how the private sector is already using AI for business predictions. The introduction of LLM technology necessitates a shift in approach for central banks, moving away from relying primarily on structured data to exploring the possibilities of using unstructured data.
TLDR: The Bank of International Settlements (BIS) annual report for 2024 highlights the growing influence of AI on the global economy and the future operations of central banks, with implications for workforce, productivity, pricing, and data analysis strategies.
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