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💬 ECB Uses ChatGPT, And It Works
No complex models. No full data dumps. Just smart AI with a human touch.
Last week, the European Central Bank publicly shared how they used ChatGPT to analyze two pages of PMI commentary—and it dramatically improved their GDP nowcasts.
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🤖 What They Did
They fed just two pages of PMI narrative into ChatGPT.
The AI produced "activity sentiment scores" based on tone, anecdotes, and wording.
ECB economists dropped those scores into their existing GDP nowcasting models—and it paid off.
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📈 Why It Matters
Better accuracy: Even top-tier forecasting tools got a boost from those sentiment scores.
Faster insight: Instead of waiting for official stats, they now get a near real-time sense of economic direction.
Tiny input, real value: Two pages of text—no need for millions of news articles.
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🔍 Broader Context
This builds on the ECB’s “careful embrace” of AI, where they’ve already used LLMs to process price data, classify documents, support supervision, and even simplify communications.
Now, they're applying LLMs to economic forecasting—and proving even small inputs can carry big weight.
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⚠️ What Still Matters
ECB Vice President Luis de Guindos warned the clean AI gains don’t erase real-world risks:
Energy price shocks from Middle East conflicts could shift inflation and growth.
Trade tariffs and geopolitical uncertainty may weigh on exports and push growth down.
Monetary policy is still adapting—ECB has cut rates eight times, and further moves will depend on economic news.
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✅ Bottom Line (In My Words)