Economic policy vets see risks in AI overreliance
Summary
Economist Jason Furman said he would use AI tools for much of the White House Council of Economic Advisers’ routine analysis. Former and current policy economists cited risks to human judgment and the career path for junior economists, while Casey Mulligan said AI tools can increase demand for economists by making research faster.Key Facts
- Furman told Axios he would rely on AI tools over staff economists for much of the council’s day-to-day analytical work.
- Former CEA chair Jared Bernstein said economic advisers must tailor analysis to White House priorities and help officials interpret data in context.
- Bernstein said he believes human skill in reading a room is important in White House work and that AI is weak at it.
- Former Federal Reserve economist Claudia Sahm warned that fewer junior roles could weaken the pipeline of future senior economists.
- Bloomberg chief U.S. economist Anna Wong said AI can let senior staff work more independently and raised a speculative concern about a future shortage of human experts.
- Casey Mulligan, who served on the CEA during Trump’s first term and is now HHS chief economist, said his AI tools led offices to need more economists because they increased demand for research.
- The idea that a labor-saving tool can increase demand for labor is known as Jevons Paradox.
- Stanford economist Neale Mahoney urged organizations to prepare workers to use AI alongside people.
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