Economy

Economic systems are the foundation of modern society, shaping everything from jobs and innovation to public services and living standards. Yet today’s economies are under pressure from multiple directions: inflationary shocks, rising inequality, unsustainable debt levels, and growing financial instability. At the same time, research on planetary boundaries shows that economic activity is driving environmental overshoot, from carbon emissions to biodiversity loss and freshwater depletion. These challenges raise a fundamental question: how can economies continue to support human prosperity while remaining stable, inclusive, and within the limits of our planet? Emerging tools like AI offer new possibilities – not only for forecasting and managing short-term risks, but also for exploring entirely new models of sustainable and resilient economic systems.

Challenge 01

Build an inflation forecasting model

Challenge 02

Capitalism reimagined

Challenge 01

Build an inflation forecasting model

In collaboration with The Riksbank, the central bank of Sweden.

Inflation is one of the most important indicators for economic stability. By maintaining price stability Central banks contribute to favourable economic conditions promoting sustainable high employment and growth.

While econometric models using official statistics and diverse indicators form the backbone of forecasting, novel methods and alternative data sources could enrich our ability to detect emerging shifts earlier, thereby enhancing our grasp of economic dynamics as they unfold.

Economic shocks can emerge from diverse sources: droughts disrupting agricultural supply chains, geopolitical conflicts restricting access to critical resources, or health crises like the COVID-19 pandemic rippling through global markets. These events may trigger inflationary or deflationary pressures. How can we detect or simulate early signals of changing dynamics before they register in official statistics using alternative data sources and AI-driven models?

Assignment

Approach 1: Real-Time Data Aggregation

We encourage you to aggregate data from the web and social media for data such as pricing, search trends, news sentiment, satellite imagery, or shipping data. We expect you to augment your system with novel highly contemporary datasets.
Detect and visualise changes in pricing behaviour. Use AI-driven pattern recognition to identify inflection points earlier and with greater confidence.
Contrast or complement traditional economic indicators with real-time signals.

Approach 2: Agent-Based Simulation

Build AI agents that represent economic actors, like suppliers, manufacturers, retailers, and consumers and use these to simulate economic scenarios. For your inspiration we have attached alternative scenarios from Sveriges Riksbank.
Model how these agents react (e.g. pricing, consumption, investments, labor demand) to a chosen economic shock, for example the consequences of climate change, supply disruptions of rare earth metals, energy price spikes, trade wars. Demonstrate one such shock in more detail.

Output

A prototype (dashboard, AI model, or forecasting tool) that demonstrates your approach.
A pitch explaining how it could support central banks, policymakers, and the public in understanding inflation dynamics.
Optional: Supporting written documentation

Data sources and tools

Coming soon

Data sources

Approaches

Challenge 02

Capitalism reimagined

The global economy has generated enormous progress – lifting billions out of poverty and driving innovation. Yet it has also pushed ecosystems beyond their limits, contributing to climate change, biodiversity loss, and widening inequalities. A pressing question is: how can capitalism be reimagined so that human progress aligns with planetary boundaries? With the help of AI, we can analyze diverse sources of knowledge – from academic research and policy frameworks to business practices and investment flows – to explore models for a truly sustainable economy.

Assignment

Build an AI solution that can:

Gather and synthesize insights from open research, sustainability frameworks, and economic data.
Explore new models of capitalism that integrate growth, equality, and environmental limits.
(Bonus) Create scenarios or simulations that show trade-offs between prosperity and ecological sustainability, and propose policy or business pathways.

Output

A prototype (AI-assistant, interactive dashboard, or scenario simulator) that shows how different approaches to capitalism affect both human progress and the planet.
A pitch explaining how the solution could inspire policymakers, investors, or entrepreneurs to rethink economic systems.

Data sources and tools

Here, you’re encouraged to explore and identify your own data sources, research, and insights that can help you shape your idea.

Data sources

Economy

Build an inflation forecasting model

Assignment

Output

Data sources and tools

Approaches

Capitalism reimagined

Assignment

Output

Data sources and tools

Approaches

Jury

Prizes