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Artificial intelligence: a central bank's view: Keynote speech by Piero Cipollone, Member of the Executive Board of the European Central Bank, at the National Conference of Statistics on official statistics at the time of artificial intelligence

ecb-speeches economics-business-work Jul 4, 2024 source →
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economics-business-work
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Artificial intelligence: a central bank’s view: Keynote sp

Claims from this story

Every atomic assertion extracted from the underlying record, ranked by evidence strength.

Artificial intelligence (AI) could affect cost pressures in the economy in both directions.

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The labor market is the second area of the economy that is likely to be affected by Artificial intelligence (AI).

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The burgeoning interest in generative AI has boosted AI adoption.

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The world is witnessing extraordinary advances in the field of Artificial intelligence (AI).

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Automation implies capital taking over a task previously performed by a worker.

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Artificial intelligence (AI) can rapidly analyse vast volumes of media reporting and market commentary.

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Central bank communication is another area in which Artificial intelligence (AI) can contribute.

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Excessive reliance on Artificial intelligence (AI) could reduce operational resilience.

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New technology can lead to the creation of new kinds of jobs.

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A key risk is that most of the value created by Artificial intelligence (AI) is extracted by a few companies that end up dominating the AI ecosystem.

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Whether Artificial intelligence (AI) will show up in productivity statistics or create a new paradox remains uncertain.

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Trust in Artificial intelligence (AI) solutions comes from first understanding them.

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New technologies can substitute or complement labor.

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Artificial intelligence (AI) may go on to influence the natural rate of interest.

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Technology has not fundamentally changed the way the ECB thinks about monetary policy.

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Artificial intelligence (AI) might also bring profound changes to the field of market infrastructures and payments.

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A key strength of human intelligence is the ability to reflect on its limits.

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A risk emerges from over-arching dependence on Artificial intelligence (AI).

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The transformative potential of Artificial intelligence (AI) may not always be productivity-enhancing.

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Financial stability is the third area of the economy that may be affected by Artificial intelligence (AI).

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The ECB's Information Systems department has become the largest business area within the institution.

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Piero Cipollone delivered a keynote speech on artificial intelligence from a central bank's view at the National Conference of Statistics.

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Artificial intelligence (AI) could also create upward price pressures.

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Only 8% of organizations reported using Artificial intelligence (AI) for five or more business functions, suggesting that AI integration is still in its initial stages.

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Artificial intelligence (AI) may involve a paradox similar to Robert Solow's computer paradox, where its impact is not immediately visible in productivity statistics.

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The European Central Bank (ECB) has developed an Artificial intelligence (AI) action plan to facilitate the adoption of AI wherever it is relevant to its tasks.

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Humans need to remain firmly in control to ensure trustworthy Artificial intelligence (AI) use, address accountability, and maintain public trust in the central bank.

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The euro area also trails the United States in Artificial intelligence (AI) patent applications and journal publications.

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Artificial intelligence (AI) may encourage discriminatory pricing by facilitating the real-time analysis of consumer demand and price elasticities.

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Current data point to the euro area trailing behind the United States in terms of private investment in Artificial intelligence (AI).

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Mario Draghi observed that EU productivity growth over the past twenty years would have been on a par with that of the United States if it were not for the tech sector.

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Artificial intelligence (AI) could provide consumers with better tools for price comparison.

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The 'Magnificent Seven' firms in the United States currently benefit from the Artificial intelligence (AI) boom and make higher yearly profits than all the listed companies of France, Germany, and Italy combined.

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The macroeconomic impact of Information and communication technology (ICT) on productivity has not been as large as expected, at least outside of the tech sector.

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The rise of Information and communication technology (ICT) resulted in productivity gains being concentrated in the IT sector and primarily benefiting countries with large, successful tech firms.

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Artificial intelligence (AI) may exert downward pressure on prices if it substitutes labor and increases productivity, reducing labor shortages and unit labor cost growth.

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Productivity gains from Artificial intelligence (AI) at the firm level may not translate into sustained value-added gains at the aggregate level, as market power increases costs.

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Artificial intelligence (AI) influences the environment in which central banks operate and how that environment interacts with monetary policy.

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Widespread Artificial intelligence (AI) adoption could heighten the potential for herd behaviour, market correlation, deception, manipulation, and conflicts of interest in the financial system.

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Survey evidence suggests that AI adoption by European firms nearly matches that of North America.

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Information and communication technology (ICT) has become key to the ECB's core tasks, from economic models to monetary policy implementation and market infrastructure operation.

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Around two-thirds of organizations that adopted Artificial intelligence (AI) are using generative AI.

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If new Artificial intelligence (AI) tools are used widely in the financial system and AI suppliers are concentrated, operational risk, market concentration, and too-big-to-fail externalities may increase.

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The application of Artificial intelligence (AI) could allow banks to conduct more efficient risk assessments and capital and liquidity planning.

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The sheer speed of AI diffusion across sectors and firms has little historical precedent.

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The ultimate impact of Artificial intelligence (AI) on employment remains uncertain and is likely to hinge on equipping the workforce with skills that complement AI.

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The eventual outcome of AI's productivity impact will depend on whether there is rapid and broad-based adoption and diffusion of AI across all sectors of the economy.

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Central banks, including the European Central Bank (ECB), are monitoring Artificial intelligence (AI) developments closely.

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Initial evidence for Europe suggests that occupations more exposed to Artificial intelligence (AI) have seen an increase in their share in total employment, mostly for highly skilled occupations and younger workers, with significant heterogeneity across countries.

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Knowledge-intensive services, including finance and insurance, advertising, consultancy, and IT, are most likely to be affected by Artificial intelligence (AI).

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Another 30% of jobs in European countries have a medium degree of exposure to AI-enabled automation.

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Unemployment in the euro area is at a record low.

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The working age population in the euro area is projected to decline by 19% by the end of the century due to population ageing.

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Artificial intelligence (AI) could lead to a decline in energy prices through enhanced grid management and more efficient energy consumption.

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ECB staff analysis suggests that around 25% of jobs in European countries are in occupations highly exposed to AI-enabled automation.

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Estimates of aggregate AI effects on productivity over the coming decade differ markedly, ranging from an increase in annual total factor productivity growth of less than 0.1 percentage points to annual labor productivity growth of up to 1.5 percentage points.

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The uptake of Artificial intelligence (AI) will impact global energy demand, with the computational power required doubling every 100 days.

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Increased computational power for Artificial intelligence (AI) could push up energy costs.

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Several studies already point to sizeable AI-induced productivity gains at the firm level.

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Productivity tends to increase with the automation of tasks, which may contribute to increased labor demand for non-automated tasks if price reduction spurs strong demand growth.

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