The transformative power of AI: economic implications and challenges - Call for papers

Recent advances in the field of Artificial Intelligence (AI) have the potential to transform our economies, from providing workers with new productivity-enhancing tools to enabling businesses to optimise their pricing strategies in new ways. However, at the same time, AI-powered technologies raise ethical and regulatory concerns. Given this ambivalence, a better understanding is needed of the economic implications and challenges associated with AI.

To this end, the European Central Bank is organising a high-level conference entitled “The Transformative Power of AI: Economic Implications and Challenges”, which will take place in Frankfurt am Main on 1-2 April 2025. 

This conference will bring together leading researchers, practitioners and policymakers to discuss the transformative power of AI. The conference will include keynote speeches by Kristina McElheran (University of Toronto), Jonathan Haskel (Imperial College London, TBC), and Claire Monteleoni (University of Colorado, Boulder). It will also feature a panel discussion on fostering the creation and diffusion of AI while addressing its risks with Jesús Fernández Villaverde (University of Pennsylvania), Valérie Pisano (Mila, CEO), Lucilla Sioli (European Commission, TBC), Philippe Aghion (INSEAD, London School of Economics and College de France, TBC) and Karine Perset (OECD, TBC). ECB Executive Board member Philip R. Lane  will give an introductory address. The conference will be web-streamed, but we expect physical presence of participants presenting or discussing the papers.

We invite authors to submit completed papers or extended abstracts in PDF format by 2 December 2024.

All submissions should be sent to AI-Conference@ecb.europa.eu.

Selection process

The papers will be selected based on originality, analytical rigor, and policy relevance. Preference will be given to completed papers. Authors of accepted papers will be informed by 10 January 2025. The conference material will be published on the ECB's website.

Topics

The organising committee is seeking research papers to be presented and discussed regarding the following topics, preferably with a focus on the European dimension or in comparative terms to other major economic regions:

How is AI transforming the labour market?

• Is AI complementing or substituting human labour?
• What are the consequences of AI for jobs, wages, job security, or working conditions?
• Can AI foster labour market transitions and affect the dynamics of job search?
• What new job types will emerge and how will they impact skills demanded?
• How does the adoption of AI technologies interact with global ageing trends? Can ageing slow down the diffusion of AI or amplify the risk of rising inequality?
• What are the implications of AI for wage and wealth inequality?
• How might AI impact the power dynamics between employers and employees, particularly in the context of collective bargaining?

Is this time different? Will AI have a significant effect on productivity?

• How can we measure and identify the effects of AI adoption and diffusion on productivity?
• Could AI lead to a new productivity paradox, where the benefits of AI investments have no significant impact on aggregate productivity growth, or will this time be different?
• What are the main barriers to realising the potential productivity gains from AI, such as regulatory, organisational, or technological challenges? And the main supporting factors?
• In which sectors or firms is AI likely to have the most significant impact on productivity? What role does AI play in enhancing productivity in traditionally low-productivity sectors, such as retail or public administration? Will AI technologies contribute to the catch-up of laggards, or will it increase dispersion?
• What are the implications of AI for the return on investment in capital-intensive industries? Could AI lead to new forms of capital investment that significantly enhance productivity?
• Can we already see, and explain, differences across euro area countries in AI adoption and its impact, as well as vis-à-vis other major economies?
• Can AI help mitigate the decline in the contribution of labour to potential growth due to ageing, worker preferences, and climate change challenges?

Does AI matter for monetary policy?

• In what ways can AI assist central banks in analysing vast amounts of data to inform monetary policy decisions, monitor and mitigate systemic risks within the financial system?
• How can AI foster the forward-looking setting of monetary policy? Can it enhance the accuracy and timeliness of economic forecasts?
• How might AI technologies influence monetary policy transmission?
• Could AI-driven platforms alter the sensitivity of borrowing and lending rates to changes in central bank policy rates?
• In what ways could AI impact the availability and cost of credit, particularly through automated credit scoring and lending algorithms? Can it lead to a more pro-cyclical credit supply?
• Could AI-driven trading strategies amplify or dampen the impact of monetary policy on asset price and exchange rates volatility, especially in the context of algorithmic trading in relevant markets?
• What are the potential risks of AI-induced mispricing in asset and forex markets, and how could this affect the overall effectiveness of monetary policy?
• How might AI technologies influence the formation and management of inflation expectations?
• What role could AI play in enhancing central banks’ ability to communicate and shape public expectations?
• Could AI-based systems potentially influence or even automate parts of the decision-making process?
• Could AI-driven technologies lead to new monetary policy tools or approaches?

Expenses

Financial support for travel and accommodation costs might be available for presenters and discussants from academia.

The ECB will not reimburse travel expenses of speakers from other central banks, national competent authorities, European or international organisations, from the private sector, and of academic speakers with a joint appointment in such organisations.

No participation fees will be charged.

ECB scientific committee

K. Budnik, A. Dias da Silva, G. Gonzalez-Torres, P. Lopez-Garcia, P. McAdam, W. Modery, N. Zorell and M. Freier.

Conference Administration

C. Childs and J. Cramer