Co-evolution of AI and Institutions from an Institutional Economics Perspective

Based on the theory of institutional economics, this paper focuses on the framework of institutional quality determining long-term economic prosperity proposed by Daron and other Nobel Prize winners, and employs a comparative approach of historical cases and literature review to explore the interaction mechanism between artificial intelligence (AI) technology and institutional arrangements and its impact on the economy and society under the perspective of institutional economics. The study finds that AI reshapes the global economic landscape through digital transformation. However, there is an endogenous contradiction between technological progress and institutional adaptation, and AI has triggered a series of problems such as the widening wealth gap. The study further points out that a rational institutional design can promote the healthy development of technology and alleviate technological inequality and imbalance in wealth distribution. Drawing from these findings, this paper demonstrates the necessity of constructing a coevolutionary system between AI and institutions, and contributes to the theoretical integration of institutional economics and AI.