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.
Meera Desai, Dallas Card, Abigail Z. Jacobscs.CY cs.CL
Large language models (LLMs) are reshaping social science methodology. Researchers increasingly prompt language models to generate quantitative measurements of social concepts, for example labeling data or simulating survey responses. Yet LLMs pose methodological challenges including bias, hallucination, and brittleness across contexts, with unclear threats to validity. Standard practices and norms for addressing these challenges are still emerging. We collect and systematically analyze validation practices in a comprehensive corpus of papers from eight flagship social science journals that use LLMs as measurement instruments. We find that LLM-generated measurements frequently play a central role in empirical analyses, yet validation practices are inconsistent and limited. We outline complementary strategies for more robust validation, pointing toward better norms and standards around the use of LLMs in social science.