The Microeconomics of Artificial Intelligence (2025)

(direct.mit.edu)

30 points | by neehao 2 days ago

3 comments

  • nadetastic 22 minutes ago
    > Applied statistics is a far more precise descriptor, “but no one wants to use that term, because it’s not as sexy.”

    This really hit me some time back when I was explaining AI to a friend. After about 10 mins of rambling about LLMs and mentioning the attention paper like I knew what I was talking about, it ended with “oh so it’s just a really advanced auto correct”

  • amelius 1 hour ago
    Speaking how which, how are economists using AI? Are they getting better at making predictions?
    • garethsprice 1 hour ago
      The added speed of AI tools means they're now able to predict 18 of the next 10 recessions.
    • zzleeper 4 minutes ago
      Honestly, it's a bit of a disappointment

      - Many more mediocre papers written (mediocre ideas, implementation, claude-isms everywhere)

      - Much easier to try every possible combination of a regression in order to show the result you want (same for theorists).

      The one thing I'm happy about is it's now much easier to extract historical data from old documents from Google Books. Still not perfect, but takes you 95% there. And creating plots and datavis just for quick exploration is super fast.

    • WokeUp420 1 hour ago
      That would require AI to be accurate
      • kulahan 1 hour ago
        It wouldn't require perfect accuracy, just rough accuracy and a human to confirm, and it's already more than good enough for that. I do not understand this confusion surrounding modern math.
    • dismalaf 1 hour ago
      Here's the thing about economists... The loudest ones don't want to be correct, they want to be influential. The ones who can actually make good predictions work for banks and hedge funds lol.
  • conorcleary 2 hours ago
    [flagged]