1 min read

When AI Becomes a Policy Advisor (And That's Not a Compliment)

Three economic advisers sit in a boardroom labeled "Department of Economic Advisers" as one suggests, "Why not ask the black-box chatbot for a tariff formula?"

Because every product even policy deserves a proper strategy.

The Verge just published some interesting findings: The administration's proposed tariff math may have been inspired by AI chatbots.

That's right. Tools like ChatGPT, Gemini, Claude, and Grok were asked how to calculate tariffs, and they returned a clean, simple (and completely wrong) formula:

Tariff = (Trade deficit ÷ Exports) ÷ 2

It turns out that exact same formula showed up in the administration's proposed tariff logic. Economists are calling it "extraordinary nonsense."

I call it a cautionary tale.

So, what is the product takeaway?
Just because AI gives you an answer doesn't mean it's the right one. And when the stakes are high whether you're shipping code or shaping trade policy blindly copying the output without understanding the why can lead to real damage.

As product leaders, we should:

  • Use AI to augment judgment, not replace it
  • Pressure-test every model-driven suggestion. Don’t take it at face value.

If AI is going to be part of the process, it needs a human in the loop especially when that loop includes global economics.​​​​​​​​​​​​​​​​

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