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Economic patterns in a world with artificial intelligence

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  • Dirk Nicolas Wagner

    (Karlshochschule International University)

Abstract

This article outlines relevant economic patterns in a world with artificial intelligence (AI). Five specific economic patterns influenced by AI are discussed: (1) following in the footsteps of ‘homo economicus’ a new type of agent, ‘machina economica’, enters the stage of the global economy. (2) The pattern of division of labor and specialization is further accelerated by AI-induced micro-division of labor. (3) The introduction of AI leads to triangular agency relationships and next level information asymmetries. (4) Data and AI-based machine labor have to be understood as new factors of production. (5) The economics of AI networks can lead to market dominance and unwanted external effects. The analytical perspective is rooted in institutional economics and serves to integrate findings from relevant disciplines in economics and computer science. It is based on the research proposition that ‘institutional matters’ are of high relevance also in a world with AI but that AI gives a new meaning to these matters. The discussion unveils a reinforcing interdependence of the patterns portrayed and points to required research.

Suggested Citation

  • Dirk Nicolas Wagner, 2020. "Economic patterns in a world with artificial intelligence," Evolutionary and Institutional Economics Review, Springer, vol. 17(1), pages 111-131, January.
    • Handle: RePEc:spr:eaiere:v:17:y:2020:i:1:d:10.1007_s40844-019-00157-x
    DOI: 10.1007/s40844-019-00157-x
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    Cited by:

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    2. Decheng Fan & Kairan Liu, 2021. "The Relationship between Artificial Intelligence and China’s Sustainable Economic Growth: Focused on the Mediating Effects of Industrial Structural Change," Sustainability, MDPI, vol. 13(20), pages 1-15, October.
    3. Long, Vicky & Bjuggren, Per-Olof, 2022. "Working Paper No. 355: The artificial intelligence (AI) data access regime: what are the factors affecting the access and sharing of industrial AI data?," Ratio Working Papers 355, The Ratio Institute.
    4. Jan Niederreiter, 2023. "Broadening Economics in the Era of Artificial Intelligence and Experimental Evidence," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 265-294, March.
    5. Ron Wallace, 2021. "Configuring Hayek versus Keynes: Decentralisation, regulation, and computational discovery procedures," Economic Affairs, Wiley Blackwell, vol. 41(3), pages 465-471, October.
    6. Violeta Sima & Ileana Georgiana Gheorghe & Jonel Subić & Dumitru Nancu, 2020. "Influences of the Industry 4.0 Revolution on the Human Capital Development and Consumer Behavior: A Systematic Review," Sustainability, MDPI, vol. 12(10), pages 1-28, May.
    7. Chu Ping Lo, 2024. "Digitalization, AI Intensity, and International Trade," Annals of Economics and Finance, Society for AEF, vol. 25(1), pages 251-273, May.
    8. Naudé, Wim, 2023. "Artificial Intelligence and the Economics of Decision-Making," IZA Discussion Papers 16000, Institute of Labor Economics (IZA).
    9. Claas Digmayer, 2024. "Automated Economic Welfare for Everyone? Examining Barriers to Adopting Robo-Advisors from the Perspective of Explainable Artificial Intelligence," Journal of Interdisciplinary Economics, , vol. 36(2), pages 224-245, July.

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    More about this item

    Keywords

    Artificial intelligence; Division of labor; Methodological individualism; Principal–agent problem; Economics of networks; Entrepreneurial economics;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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