​#worldnews #AI #CentralBank ⠀ AI instead of the Central Ban | xChief | Global

​#worldnews #AI #CentralBank
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AI instead of the Central Bank: fake or reality?
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Technically, replacing the monetary regulator with an AI model is entirely possible. Any central bank makes decisions based on economic forecasts, and the accuracy of quantitative estimates and calculations of AI models is much higher than that of standard analysts.
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AI will strictly follow the recommendations of the model, and its decisions are not influenced by emotions, political preferences, career goals, or the original vision of the situation. But you should not count on ideal decisions: The AI algorithm is a “black box,” and it is impossible to explain its logic.
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• Monetary decisions should be structural, accountable, and transparent, first of all, for politicians and the public. Central banks report in parliaments, give press conferences and interviews, publish information in the press, etc. AI will provide orders without any arguments. Trust in such a financial system will be minimal.
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• AI is based on models trained on historical data. But in case of crises or unexpected events (e.g., global pandemics or wars), AI models (there are already facts!) react inadequately to new data.
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• A monetary regulator always acts under uncertainty, where intuition, flexibility, and consideration of social and political aspects are needed. AI is (so far!) alien to everything human, and its rationality is too brutal.
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Today, the Fed, BOE, ECB, Bank of Canada, Monetary Authority of Singapore, and several other institutions actively use AI models. Although this process is not without human participation, the percentage of Homo sapiens' involvement in decision-making is still decreasing. So, a robot Fed or a robot ECB is an authentic future.
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What do you think?
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Profits to y’all!