Experts warn of risks in overreliance on AI for economic policy

Harvard economist Jason Furman suggested that if he were to return as chairman of the White House Council of Economic Advisers today, he would rely more on AI tools than staff economists for routine analysis. This sparked debate, particularly among former Econ Twitter members. Jared Bernstein, former CEA chair under Biden, noted that CEA work is highly customized, requiring detailed data explanations to busy decision-makers. Claudia Sahm, a former Fed economist, raised concerns about the loss of junior positions and the potential impact on future leadership. Wong speculated on X that AI, through years of training, could become the source of new ideas, rather than replacing aging experts. Casey Mulligan, former CEA member and current HHS economist, argued that AI's impact on policymaking labor is not straightforward. Stanford economist Neale Mahoney concluded with a call for proactive technological change in labor practices.