Machine learning in economics: Should economists worry?

The application of machine learning in economics is the cool thing. Machine learning uses algorithms and statistical models that perform tasks based on patterns and inferences. It is not really a new idea, but its application in economics is going to increase significantly as seen by the recent working paper by a team of RBI economists, which looks at machine learning for economic forecasting. To get an idea on machine learning in economics, one should go back to the Jean Monnet lecture by Susan Athey, Professor, Economics of Technology, Stanford University. Her lecture'Machine learning in economics' was delivered at the 4th ECB Annual Research Conference on September 5-6.