ECB Explores AI to Improve Inflation Forecasting

The ECB aims to use AI to better understand inflation dynamics and price-setting behavior.
AI will be used to process and analyze vast amounts of data like prices, statistics, news, and documents.
The ECB wants to leverage AI to automate data classification from various entities.
AI is expected to simplify ECB communications and translations into multiple languages.
This initiative comes after the ECB has struggled recently with major misses in its inflation forecasts.