From Static Models to Autonomous Economic Agents
Agentic AI represents a significant evolution from static large language models to autonomous AI systems capable of perception, reasoning, and executing complex multi-step workflows with minimal human oversight. In economics and finance, these agents are transforming research and trading through automated financial data analysis, algorithmic trading, and sophisticated Agent-Based Modeling (ABM).
Economic Value vs Systemic Risk
While agentic AI systems offer enterprises substantial business value through operational efficiency and strategic agility in financial services, they introduce significant systemic risks including AI-driven market manipulation, algorithmic collusion between automated trading systems, and AI hallucinations that can destabilize financial markets.
Validation and Governance Requirements
Successfully leveraging agentic AI in economics depends on balancing its transformative potential with robust safeguards. Deployment in financial markets requires rigorous validation and governance frameworks.
Critical requirements include:
- •Empirical validation methods (model docking, sensitivity analysis, stress testing)
- •Robust AI governance frameworks and regulatory oversight
- •Algorithmic accountability and cybersecurity risk management
- •AI transparency and alignment with human values and financial stability