AI basics
What is AI short for?
Artifical intellegence
In which decade did economists start using computers and math?
1950
Name one thing AI can predict in the economy
Inflation, unemployment, economic growth, trading, checking credit risk, spotting fraud, managing investments, and market crashes
What is one use of AI in finance?
trading, checking credit risk, spotting fraud, and managing investments
What does AI do better than older models?
doing real-time data and finding data faster without needing a specific prompt
What kind of systems did early AI use?
simple rule based
What made machine learning popular in the 2000s?
a big increase in data and computer power
How does AI help understand consumers?
by making simulations and looking at data
How does AI help with credit risk?
using data to look at what can cause credit risk
What can AI simulate in markets?
crashes, consumer behavior, and how policies will work
What is machine learning?
allows AI to grow with information
What changed in AI from the 1950s to the 2000s?
from rule-based to machine learning
How does AI help test economic policies?
looks at consumer behavior
Name a way AI helps manage investments.
using data in real time
Why is not needing a specific model important?
because it can adapt to changes
What makes AI great today?
something about how it helps with jobs, money, or business
What type of data increased in the 2000s?
inflation, unemployment, and economic growth
How does AI help predict unemployment?
by using data to make better predictions
How does AI detect fraud?
Looks at your purchase data and compare it with potential fraudulent activity
How does AI affect jobs and wages?
because it takes jobs or makes them easier, lowering the wages
Name one tool AI uses to analyze economies
something about machine learning or simple rule based AI
What were early rule-based systems limited by?
needing specific instructions
Give an example of a complex economic event AI can simulate.
market crash
How does AI change how financial markets are analyzed?
because it can looks at a vast amount of data in seconds
How can AI help governments design better economic policies?
because it can simulate how they might work