I would have asked David Laibson whether recessions caused by financial crisis, such as the 2008 mortgage crisis, would exist if we could predict them with AI? Would our faith in AI being able to successfully identify dangerous bubbles in the economy be a bubble in itself and not proper accounting of risk?
I am wondering his opinion on this, as we get more and more advanced in our abilities to make predictions of the economy. AI’s advantage is its ability to synthesize and understand more data than the human mind could ever comprehend, and so it may be possible in the future for AI to study every single transaction and input occurring in the economy.