CNB study highlights AI’s limits as inflation forecasting tool
Bank says tech can help analysts, but is not yet capable of replacing traditional predictive models
A study by the Czech National Bank (CNB) finds that artificial intelligence is not currently capable of supplanting traditional methods of forecasting inflation.
In a blogpost published on February 4, the central bank says it looked at how OpenAI and Grok’s large language models could have forecast inflation in the Czech Republic one year ahead between Q1 2019 and Q4 2024.
During the period of stable inflation that preceded the pandemic, OpenAI’s forecasts were broadly aligned with those of
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