How Is AI Changing the Economic Landscape?

Traditional models such as linear and logistic regression struggle with messy, high-volume data from news and social media. Neural networks and large language models pick up patterns in that data and turn them into real-time economic insight.

Generative AI already helps economists brainstorm, analyze data, and solve equations, and an Ateneo de Manila study applies deep learning to predict money market interest rates. The trade-off: bad or incomplete inputs produce wrong predictions, and many AI models are hard to interpret.