Posted 3/12/2024, 1:34:00 AM
Singapore central bank: AI not yet ready for policy decisions, but shows promise to aid economic modeling
- Senior Singapore central bank official says AI not yet suitable for policy work due to limitations like opacity and lack of logic/math skills
- But AI has helped with things like identifying financial anomalies and generating inflation expectations
- AI language models can generate scenarios and beat experts at forecasting, but are "fragile" and sensitive to prompts
- Best role now is for AI to complement existing economic models, not replace them
- Official sees promising future for AI in central bank modelling as techniques improve, but intervention needed to ensure it works as intended