The Role of Artificial Intelligence in Reshaping International Political Economy: Perspectives on Economic Governance and Policy Management

Artificial Intelligence (AI) has emerged as a transformative force reshaping the international political economy (IPE) by influencing global trade, economic governance, and policy management. As technological advancements accelerate, AI's applications in decision-making, predictive analytics, and economic simulations have introduced unprecedented efficiency and transparency into governance frameworks. However, these advancements also pose challenges, including ethical dilemmas, global inequalities, and cybersecurity risks, necessitating a comprehensive exploration of its impact on the global economic order. This study aims to analyze the multifaceted role of AI in reshaping the IPE, focusing on its implications for economic governance and policy management. By adopting a mixed-methods approach, the research combines qualitative analysis of AI-driven case studies with quantitative evaluations of global trade and policy data. The study investigates AI's transformative influence on decision-making processes within international institutions, its role in optimizing global supply chains, and its applications in monetary policy and financial management. Additionally, it addresses the risks associated with AI, such as algorithmic bias and regulatory fragmentation, and examines strategies for mitigating these challenges. The findings reveal that while AI enhances efficiency and fosters innovation in economic governance, its benefits are unevenly distributed across nations, exacerbating technological divides. To harness AI's potential, the study proposes inclusive governance frameworks, harmonized policies, and capacity-building initiatives for developing economies. This research contributes to the broader discourse on the intersection of AI and global governance, offering actionable insights for policymakers and scholars.