The AI Revolution: A New Paradigm of Economic Order

Abstract Artificial intelligence (AI) constitutes a new technological revolution that has far-reaching, somehow paradigmatic implications for the economy and as well as for the society – for good and for evil. Given the specific properties of artificial intelligence this article analyses the economic consequences of AI on productivity and growth, the distribution of income as well as on firms, markets, and competition. It argues that artificial intelligence is creating a new economic order that requires new approaches to economic policy and regulation. Issues of how to maintain competition, protect consumer rights, promote AI literacy and preserve ethical standards are at the center of a holistic AI governance.