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BOE’s Pill Says AI May Help Central Banks Make Better Decisions - BLOOMBERG

MAY 15, 2023

(Bloomberg) -- The automation revolution may trigger a jump in UK living standards and allow central banks to make better decisions, according to Bank of England Chief Economist Huw Pill.

Pill said the use of AI could be a “win win” for households as it should unlock an increase in productivity that boosts living standards. 

He told an online question-and-answer session Monday that the technology could also allow the central bank to improve its forecasts, allowing it to improve policy and create a more stable economic backdrop.

Pill’s remarks add to an intensifying debate over whether the rapid emergence of AI will be transformative for advanced economies that have suffered sluggish productivity growth since the financial crisis.

“Using AI to make ourselves more productive is one example of how we can do that to boost living standards,” he said. “This is a win win if we all get better off because we’re all more productive.”

He added that AI could allow the BOE to “we produce better forecasts and better policy.”

The comments come as the BOE faces criticism for big revisions to its economic forecasts and battles to bring down double-digit inflation. Pill conceded that its projections had been “not good of late.”


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