DAILY INNOVATION BRIEF by Maryanne Kane, Journalist
D A ILY INNOVATION BRIEF By Journalists Edward Kane & Marya nne Kane AI CAN PREDICT INTEREST RATE DECISIONS Source: Bank of England & Stock UK researchers have used AI to successfully predict future interest rate decisions by the Bank of England. Here's what we know: Researche rs at Sheffield University's School of Business used the generative AI program ChatGPT to successfully forecast interest rate decisions by the Bank of England They fed the AI program more than 700 speeches made by top Bank of England policymakers right before interest rate decisions between 1997 and June 2023 The AI program correctly predicted the rate decision 32% of the time, which is a big breakthrough A success rate above 10% in social science statistical predictions like this is considered outstanding The potential benefit for the public is significant because it enables them to make informed, person