AI-driven forecasting has followed a “gradually and then suddenly” trajectory, where years of incremental progress have recently accelerated with the rise of large language models and increased attention, according to Ryan Severino, chief economist with BGO, in his latest post.
BGO has been developing AI forecasting capabilities for more than six years, initially focusing on rent growth models before expanding into broader macroeconomic and policy analysis. These models are not meant to replace traditional forecasting, but to complement and enhance it by offering new ways to analyze complex and uncertain economic dynamics.
An example highlighted is a machine learning model that successfully anticipated the persistence of elevated tariffs despite legal and political shifts, demonstrating the potential of AI to capture behavioral and policy-driven outcomes.
To read the full post,
