Beretta, Edoardo Dianova, Vera Pankratz, Giselher Schollmeyer, Uwe 2025 The European Union has been a pioneer in creating a comprehensive legal framework on artificial intelligence (AI). However, some nuanced risks of advancing technologies may be easily overseen. In this research note, we consider the possible impact of accessible AI on the formation of monetary policy expectations and evaluate the implications for monetary policy implementation by central banks. We offer a conceptual model of AI-driven self-fulfilling economic prophecies and discuss eight strategies that central banks may adopt in response to these dynamics. Central banks may face significant challenges in adapting monetary policy frameworks to broad-based AI-driven forecasting, but the rapid pace of technological evolution suggests this task should be a priority. application/pdf https://n2t.net/ark:/12658/srd1334718 https://susi.usi.ch/global/documents/334718 https://susi.usi.ch/documents/334718/files/AI-Based Forecasting and Market Expectations A Self-Fulfilling Prophecy .pdf eng info:eu-repo/semantics/altIdentifier/doi/10.1080/09538259.2025.2562206 info:eu-repo/semantics/altIdentifier/ark/12658/srd1334718 info:eu-repo/semantics/openAccess CC BY-NC-ND Review of Political Economy. - 2025, p. 1-16 Artificial intelligence (AI) Central banks Market expectations Monetary policy Self-fulfilling prophecy info:eu-repo/classification/udc/33 AI-based forecasting and market expectations : a self-fulfilling prophecy? http://purl.org/coar/resource_type/c_6501