Artificial Intelligence is Transforming Economic Research
Imre Fertő
23/09/2025
Artificial Intelligence is Transforming Economic Research—But Only Rigour, Transparency, and Policy Can Maximize the Benefits
Artificial intelligence (AI) has long been touted as a game-changer for the sciences. Yet, in the field of economics, its proliferation marks not just another technological upgrade, but a fundamental systems-level transformation. As digital technologies and computational power expand, AI’s adaptive, data-driven methods are reshaping how economists analyze causal relationships, distribute resources, and engage with society. But with great promise comes an equal measure of risk—ethical dilemmas, inequality, and the danger of opaque, “black box” algorithms.
This post draws on recent research to explore three central questions for economic science: How can AI’s data-centric logic be reconciled with economics’ causal analytic tradition? What are the distributional consequences of AI for labour, capital, and knowledge? And finally, what institutional and regulatory safeguards are needed to harness AI’s potential while minimizing harm?
