AI
Can AI Help Governments Improve the Economy?
Can AI Help Run an Economy? How artificial intelligence could help governments understand, simulate and improve economic policy - without turning algorithms into rulers AI may never become a digital finance minister, but it could become something more useful: a laboratory for testing economic decisions before they reach the real world. Imagine that a government is preparing a major tax reform. Economists can estimate how households might react, compare historical cases, build several models and argue over assumptions. What they cannot do is rewind the country and try the reform again with a different tax rate, then again with another subsidy, and again with a different interest-rate path. In economics, history usually gives us one run. Now imagine a different kind of policy laboratory. Before changing a single rule, the government creates a large simulated economy containing artificial households, firms, banks and supply chains. Some households save, some spend, some are heavil...
10/07/2026 01:01:00 PM