Salesforce's AI Economist taps reinforcement learning to generate optimal tax policies

Salesforce today announced the AI Economist, a research environment designed to elucidate how economic design might be improved with techniques from the field of AI and machine learning. The goal is to help economists, governments, and others design tax policies that optimize not only productivity and conservation, but that promote widespread, whole-country social equality. Studies have shown that income inequality gaps can negatively impact economic growth, economic opportunity, and even health. For example, over-taxation can discourage people from working, leading to lower productivity. But it's difficult to experiment with tax policies in the real world, at least in part because economic theory relies on stylized assumptions that are tough to validate, like people's sensitivity to taxes. The AI Economist, then, learns the best tax policies from simulations in which citizens and a government adapt and learn.