Introduction

Personalization. IT operations management. Process automation. Financial reporting. Financial accounting. Recruiting and hiring. Safety and quality. Workforce schedule optimization. Cloud pricing optimization. Assistants and chat bots. Customer services operations. Predictive maintenance and so on.

This is a small list of popular enterprise AI use cases nowadays. It is impressive and stills it gets not even close to encompass the applications already in place throughout society today. Its innovative and disruptive character is reshaping traditional business models and societal structures. Fostering an environment that requires a lot of adaptability and forward-thinking strategies.

Despite its impressive state at 2023 last quarter, the global development of AI seems to be far away from the technological transcendence that recent historical events involving the maybe most popular AI organization in recent history calls to light.

In a sheepish debate with far more smoke than light, however, there are some people pointing to the ‘Achilles heel’ of the episode: the proximity or not for AGI achievement and who is able to determine it, what are the safety issues and so on. Not to talk about the drama per se, but one of the crucial issues it brings to the public debate: are we close to an AI which would surpass human capabilities — getting to the singularity?!

If we remain close to the public facts and the current state of AI already running on businesses and society, it is kind of: “oh well seems that we have yet a long run for it” perspective on it. For sure, we can not rely on it only. However, outside the facts and public narratives, everything is just speculation.

Therefore, in this article we will be strict to the historical facts that we have public access to. Which gives us the possibility to stick to a “realistic” landscape, so let’s just mentally “eliminate” the question of technological transcendence or the famous “singularity” for now and focus on the AI economy that is already in place, its tendencies possible avenues to enhance our abilities of producing actionable understanding drawing some diagnosis and visualizing some possible future trends within the current sociotechnical paradigm.

For this endeavor to be more understandable I will draw two complementary main analytical lanes.

There is already an AI economy in motion that almost everybody is kind of aware of or at least being affected by it if not directly, indirectly. We need more tools to make sense of societal and economic life. With these purposes I will suggest political economy as a strong candidate as a source of analytical tools for drawing understandable and coherent analysis of society's current moment. It is a scientific lens of a subfield of political science, which can give us some systematic and methodological way of reasoning about these issues.

Artificial Intelligence Economy: current landscape

Currently, at 2023 last quarter, we have information pointing that the average deal for AI startups is about 29.2 million dollars. Which is 48% more than 2022. As any other market, Artificial Intelligence is driven by numbers and money. Around the AI Market, there is something greater we can call “The AI economy”.

This concept subsumes the process of integration of artificial intelligence technologies into various aspects of society, business, and daily life. Leading to a lot of economic changes. On a general level, this integration encompasses the development, deployment, and utilization of AI systems to enhance productivity, efficiency, and decision-making across industry sectors. Which is embodied in use cases like we first saw at the beginning of the article.

This technological integration is triggering a lot of changes in the economy as a whole — externally to the AI economy cluster itself. From this more “strict” economic perspective it has significant implications, contributing to increased productivity, innovation, and the creation of new industries and job roles. However, it also raises concerns about job displacement, economic inequality and algorithm bias which can lead to social injustice.

Other key features of this economy are human-AI collaboration, workforce augmentation and substitution, global competition and collaboration of states, corporations, scientific institutions and others in the development of its common standards and solving the more complex problems.

Ethics and policy regulation is another core axis of AI economy. Currently, transparency, bias and accountability are the main aspects in discussion. And here we can start to draw some connections to see the value of political economy lens to better foster our understanding of current forces in play at the fabric of our societal reality. Given that political economy is an interdisciplinary approach that, to put it simply enough, is concerned with analyzing and understanding the intersections of individuals, markets and states.

In summary, the AI economy represents a paradigm shift in how technology is harnessed to drive economic growth, societal development, and innovation. It requires a careful balance between reaping the benefits of technological advancements and addressing the ethical, societal, and economic challenges that arise in this transformative era.

The transformative changes that extend beyond the traditional realms of production and distribution is an invitation for analyzing these changes through a political economy lens given the complexities and implications involved including the three agents we have mentioned earlier: individuals, states and markets.

Artificial Intelligence Political Economy: suggested perspective of analysis

In contemplating the trajectory of the AI economy, it becomes evident that the decisions we make today will profoundly influence the collective and individual narratives of tomorrow. As we stand at the intersection of individuals, markets and states, the imperative to wield a discerning lens – that of political economy – gains paramount importance. But why? We hope to shed some light on the motives in the following topics.

The Transformative Power of AI: A Societal Metamorphosis

The AI revolution is not confined to the realm of technological advancement; it's a societal metamorphosis that will redefine the very fabric of our existence. From the way we work and interact to the core of our identities, the omnipresence of AI technology will catalyze unprecedented shifts. Considering the prerogative that the environment is the sculptor of human agency, AI is becoming a kind of platform for nowadays society, shaping it and individuals alike. Its social fabric power is crucial for political economy analysis.

Decoding the Noise: The Political Economy Perspective

Political debates surrounding AI often reverberate with noise, speculation, and emotional discourse. The political economy perspective, however, serves as a beacon, offering a more systematic and scientific approach to these discussions.

It enables us to navigate the speculative terrain with a nuanced understanding, dissecting the layers of complexity inherent in the AI discourse because this scientific lens on society is focused on the comprehension of the intersection between individuals or subjectivities, markets and states.

From this perspective, AI is a catalyst and some key debates on these processes are:

  • Algorithmic Governance: Discusses the implications of AI-driven decision-making in governance and policy making. Explore the potential for bias, accountability, and the balance between human oversight and algorithmic autonomy.
  • Economic Disruption and Redistribution: Delves into the economic repercussions of widespread AI adoption, analyzing how wealth and resources are redistributed. Examine policies that can mitigate economic disparities and ensure a fair distribution of the benefits of AI.
  • Security and Ethical Dilemmas: Scrutinizes the intersection of AI, security, and ethics. Discuss the ethical dilemmas posed by autonomous weapons, surveillance technologies, and the need for international cooperation to establish ethical norms in AI applications.
  • Environmental Impact: Explores the environmental implications of AI development and usage. Discuss initiatives and policies aimed at mitigating the carbon footprint of AI technologies, for example, and promoting sustainable practices.

In summary, these dimensions highlight the need for ethical and global collaboration to optimize AI benefits while mitigating risks. Some initiatives are already in motion, such as the following.

Initiatives at the Forefront: Paving the Way for Responsible AI

In the realm of practical action, numerous initiatives are taking strides to address the challenges and opportunities presented by the AI economy.

  • AI Ethics Boards: Organizations and companies are establishing AI ethics boards to oversee the ethical development and deployment of AI technologies.
  • Collaborative Research: Collaborative research initiatives, such as OpenAI were doing at least, fostering transparency and cooperation in the global AI research community.
  • National AI Strategies: Countries are designing their strategies for AI development, including investments, regulations, and policies to ensure responsible and beneficial AI applications.
  • Public Awareness Campaigns: Initiatives are being showcased at the aim of raising public awareness about AI, its implications, and fostering informed public discourse to shape policies.
  • Inclusive Design Practices: Efforts are being done to promote inclusive design practices in AI development, ensuring that diverse perspectives are considered to avoid perpetuating biases and exclusion.
  • Policy Making Initiatives: In addition to the aforementioned efforts, a crucial dimension in the responsible development of AI involves policy-making initiatives. Governments, regulatory bodies, and international organizations are actively engaged in crafting policies that guide the ethical and equitable use of AI technologies.

These policies encompass a spectrum of considerations, including data privacy, algorithmic transparency, and the societal impact of AI. The integration of thoughtful and adaptive policies is fundamental to navigating the evolving AI landscape, ensuring that advancements align with ethical standards and contribute positively to societal progress.

Charting a Course for the AI Future

As we navigate the uncharted waters of the AI economy, the fusion of political and economic perspectives becomes an indispensable compass. It empowers us to unravel the complexities, ask pertinent questions, and, most importantly, actively participate in the design of a future where AI enriches the collective human experience.

The decisions we make today will echo through the corridors of time, shaping the narrative of a world where AI may not be just a technological force but a societal collaborator in our journey towards human civilization progress.

In summary, the evolving landscape of the AI economy prompts a need for nuanced exploration, with the political economy lens serving as a valuable perspective amid the multifaceted changes.

Beyond technological advancements, AI's influence extends into societal realms, prompting shifts in how we work, interact, and shape our identities. The suggested analytical approach, examining the current AI landscape and applying a political economy perspective, provides a framework to delve into complexities surrounding algorithmic governance, economic dynamics, security, ethical considerations and environmental impact at least, as discussed earlier.

Initiatives on the horizon, such as AI ethics boards, collaborative research, policy making, national strategies, awareness campaigns, and inclusive design practices, reflects ongoing efforts to navigate responsibly within this transformative era.

Navigating the unknowns of the AI future requires a blend of political, economic and societal insights, empowering us to pose critical questions and actively contribute to a future where AI becomes a collaborative societal force, evolving alongside human civilization. The decisions we make today hold the potential to shape a narrative where AI enriches, rather than dictates, the collective human experience.