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Artificial intelligence is rapidly changing the world of work. The technology is already built into many parts of the economy: financial institutions use it to detect fraud and manage investments, retailers rely on it to understand customer behaviour, and governments use data-driven tools to assess which policies are working and which are not. At the heart of this change are the vast amounts of data collected every second.
1 INTRODUCTION Forecasts of macroeconomic and financial variables are used by forward-looking decision makers, not least by central banks given that changes in their policy tools take time to have an impact on the macroeconomy. This requires them to set monetary policy targeting forecasts of future macroeconomic values (e.g., see Woodford, 2007).
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