The Measurement Revolution? Credible Measurement and Inference in the Age of AI
Organizations: National Bureau of Economic Research
Abstract
Artificial intelligence (AI) is transforming measurement in economics. AI models convert unstructured data, such as text and images, into structured variables at low cost, making previously prohibitive measurement feasible at scale. This shifts the bottleneck from finding any scalable measure of a phenomenon to choosing among many plausible ones, which may support different empirical conclusions. This review provides guidance for navigating that shift. We describe three stages at which AI enters the measurement pipeline---discovery, construct definition, and observation---and what each demands of researchers. We argue that credible inference with AI-generated variables requires appropriately designed validation: anchoring measurement to explicit criteria, rather than informal claims that a proxy is reasonable. We then examine how validation samples support valid inference even when AI predictions are arbitrarily biased, and what can be done when a random validation sample is unavailable.
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Prediction-Powered Inference uses model predictions and a smaller set of trusted labels to make efficient estimates with statistically valid uncertainty.
See all 30 papersPosition: AI for Science Should Treat Measurement-to-Dataset Pipelines as Inference Components
given data'' freezes an observation model and obscures uncertainty over feasible pipeline choices.** We identify three failure modes arising from this frozen lens'': (C1) hidden hypothesis space, where the released dataset does not specify the pipeline configuration or its validity conditions; (C2) uncertified transportability, where a pipeline may be documented but its regime of validity is untested, so failures under distribution shift cannot be adjudicated; (C3) ungoverned multiplicity, where many defensible pipelines exist and dispersion is real but not propagated into uncertainty-aware evidence. We stress-test these claims with a large-scale neuroscience empirical audit, finding a survival rate of under a cross-dataset stability criterion. We call on the AI4Science community to make pipelines computable inference objects via domain-specific Computable Observation Frameworks. This shift enables quantifying pipeline adequacy and stability, converting implicit implementation choices into auditable, reproducible, and cumulative scientific evidence.