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Artificial Intelligence in Economic Policymaking

Cover_222_PSU_Artificial Intelligence in Economic Policymaking
Published Date November 2022
Type of Publication Reports
Publication Under APEC Secretariat, APEC Policy Support Unit
Accessed 120
Pages 11
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Description

Artificial Intelligence (AI) is a powerful tool for policymaking and policy implementation, allowing for efficiency enhancements, improvements in quality of public services, and time savings on administrative tasks. AI has applications across the various stages of the policy cycle, from agenda setting to policy formulation, decision making, implementation and evaluation. But while AI can be immensely powerful in data analysis and logic, it fares less well on policy-relevant concepts such as fairness, justice and equity, which are inherently human. The ability of AI to make sense of human reality, including understanding causality and cultural nuances, remains inadequate. Factors such as biases, prejudices or experience can influence AI algorithms and models and, ultimately, the results generated. This policy brief analyses the benefits and limitations of the use of AI in policymaking, and discusses policy options to ensure that the AI-augmented future remains human-centric.