Problems of Using Artificial Intelligence in Institutional Economics

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Abstract

The purpose of this study is to establish and systematically describe the main problems of the use of artificial intelligence within the framework of institutional economics. The paper argued the following conclusions. Artificial intelligence has the potential to fundamentally change the economy: many traditional economic activities will soon become a thing of the past, and they will be replaced by approaches related to the platform use of AI. It has been established that artificial intelligence will reduce costs and increase productivity in various industries, optimise decision-making processes, and partially overcome people's cognitive limitations and biases by generating multiple solutions to economic problems. At the same time, each of these options carries risks and threats. It is shown that artificial intelligence can reduce the problem of bounded rationality, but it is impossible to consider it as a tool for solving the main economic problem. The use of artificial intelligence will contribute to the transformation of institutional frameworks, the creation of new markets, norms and rules, which over time will predetermine the emergence of new economic institutions that will have a determining influence on the development of human civilization.

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About the authors

Andrey M. Kushnir

Financial University under the Government of the Russian Federation; Kosygin Russian State University; Russian University of Transport

Author for correspondence.
Email: Ku7@bk.ru
ORCID iD: 0000-0002-4318-0190
Scopus Author ID: 57219595324

Dr. Sci. (Econ.), Professor of the Department of Mass Communication and Media Business; Professor of the Department of Economics and Management; Professor of the Department of Customs Law and Organization of Customs Affairs of the Law Institute

Russian Federation, Moscow; Moscow; Moscow

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