# AI Economist Agent: An Agentic Framework for Evidence-Based Economic and Financial Analysis with RAG, Knowledge Graphs, and Large Language Models

arXiv: https://arxiv.org/abs/2606.20041 · HTML: https://mlsanity.com/paper/2606.20041/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Financial trading and forecasting agents, one of 16 directions in LLM agents and tool use.
- Builds on 10 of its 48 references that are in the map.
- First posted on arXiv 18 Jun 2026.

## Placed in

- LLM agents and tool use / [Financial trading and forecasting agents](https://mlsanity.com/agents/financial-trading-and-forecasting-agents/)

## Builds on (most cited first, 10 of 10)

- [Retrieval-Augmented Generation for Knowledge-Intensive NLP Tasks](https://mlsanity.com/paper/2005.11401/) (2020)
- [From Local to Global: A Graph RAG Approach to Query-Focused Summarization](https://mlsanity.com/paper/2404.16130/) (2024)
- [Enabling Large Language Models to Generate Text with Citations](https://mlsanity.com/paper/2305.14627/) (2023)
- [Ragas: Automated Evaluation of Retrieval Augmented Generation](https://mlsanity.com/paper/2309.15217/) (2023)
- [LightRAG: Simple and Fast Retrieval-Augmented Generation](https://mlsanity.com/paper/2410.05779/) (2024)
- [HippoRAG: Neurobiologically Inspired Long-Term Memory for Large Language Models](https://mlsanity.com/paper/2405.14831/) (2024)
- [ARES: An Automated Evaluation Framework for Retrieval-Augmented Generation Systems](https://mlsanity.com/paper/2311.09476/) (2023)
- [ATOM: AdapTive and OptiMized dynamic temporal knowledge graph construction using LLMs](https://mlsanity.com/paper/2510.22590/) (2025)
- [The Knowledge Graph for Macroeconomic Analysis with Alternative Big Data](https://mlsanity.com/paper/2010.05172/) (2020)
- [Causality Elicitation from Large Language Models](https://mlsanity.com/paper/2603.04276/) (2026)

## Abstract (arXiv)

We propose an AI economist agent for economic and financial scenario analysis. Scenario design often requires analysts to assess emerging risks with limited historical precedent, combine information from many sources, and translate qualitative mechanisms into internally consistent quantitative paths. Large language models (LLMs) can search and synthesize this information, but fluent narratives alone do not establish the model-based calculations needed for economic conclusions. Our framework uses LLM agents to plan the analysis, retrieve relevant evidence, and organize economic mechanisms, while registered quantitative models generate numerical outcomes and predefined tests determine whether intermediate results can be used in the final report. We apply the framework to European macro-financial stress scenarios and bank capital analysis. The empirical analysis evaluates retrieval of economic mechanisms, scenario construction, model execution, and report generation under a historical information cutoff. The results show how the AI economist agent can combine flexible evidence retrieval and scenario construction while keeping the resulting analysis linked to identifiable sources and explicit model calculations.