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How can machine learning and artificial intelligence be used in development interventions and impact evaluations?

David McKenzie's picture

Last Thursday I attended a conference on AI and Development organized by CEGA, DIME, and the World Bank’s Big Data groups (website, where they will also add video). This followed a World Bank policy research talk last week by Olivier Dupriez on “Machine Learning and the Future of Poverty Prediction” (video, slides). These events highlighted a lot of fast-emerging work, which I thought, given this blog’s focus, I would try to summarize through the lens of thinking about how it might help us in designing development interventions and impact evaluations.

A typical impact evaluation works with a sample S to give them a treatment Treat, and is interested in estimating something like:
Y(i,t) = b(i,t)*Treat(i,t) +D’X(i,t) for units i in the sample S
We can think of machine learning and artificial intelligence as possibly affecting every term in this expression: