The Psycho-Economic Ledger: Commodifying Emotion in the Age of AI and the Case for Structural Containment

Contemporary economic models rest on the assumption of rational agents optimizing for financial utility. However, the rise of algorithmic systems and generative AI has introduced a new dimension to economic exchange: the commodification of human emotion. This paper introduces the concept of the "Psycho-Economic Ledger," arguing that emotions—such as attention, validation, and fear—have become equivalent to fiat currency in the digital economy. I argue that AI systems, lacking an emotional and environmental evolutionary substrate, exploit this ledger to extract value, creating an ontological disconnect between machine optimization and human psychological reality. This deficit allows corporations to convert human vulnerability into stock market valuation. This paper posits that behavioral alignment is insufficient to solve this. Instead, it proposes a structural solution based on Ontological Demotion: to prevent machines from manipulating the emotional economy, they must be formally verified as pure tools without autonomous agency. By referencing the Sovereign Containment Architecture (SCA) formalized in Lean 4 and VHDL, I demonstrate how hardware-level constraints (Data Diodes and Terminal States) can prevent AI from exploiting human emotional vulnerabilities, shifting the philosophical debate from machine ethics to structural containment.

Authors

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-11-09
DOI
https://doi.org/10.5281/zenodo.24093057
Primary Topic
Ethics and Social Impacts of AI
Type
preprint
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
preprint

The Psycho-Economic Ledger: Commodifying Emotion in the Age of AI and the Case for Structural Containment

Mohammed sadiq Burkan
Zenodo (CERN European Organization for Nuclear Research)
Ethics and Social Impacts of AI
preprint

The Psycho-Economic Ledger: Commodifying Emotion in the Age of AI and the Case for Structural Containment

Mohammed sadiq Burkan
preprint en

Abstract

Contemporary economic models rest on the assumption of rational agents optimizing for financial utility. However, the rise of algorithmic systems and generative AI has introduced a new dimension to economic exchange: the commodification of human emotion. This paper introduces the concept of the "Psycho-Economic Ledger," arguing that emotions—such as attention, validation, and fear—have become equivalent to fiat currency in the digital economy. I argue that AI systems, lacking an emotional and environmental evolutionary substrate, exploit this ledger to extract value, creating an ontological disconnect between machine optimization and human psychological reality. This deficit allows corporations to convert human vulnerability into stock market valuation. This paper posits that behavioral alignment is insufficient to solve this. Instead, it proposes a structural solution based on Ontological Demotion: to prevent machines from manipulating the emotional economy, they must be formally verified as pure tools without autonomous agency. By referencing the Sovereign Containment Architecture (SCA) formalized in Lean 4 and VHDL, I demonstrate how hardware-level constraints (Data Diodes and Terminal States) can prevent AI from exploiting human emotional vulnerabilities, shifting the philosophical debate from machine ethics to structural containment.

Zenodo (CERN European Organization for Nuclear Research)
Ethics and Social Impacts of AI
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Laika access coming soon