{"id":3561,"date":"2026-04-25T06:25:55","date_gmt":"2026-04-25T06:25:55","guid":{"rendered":"https:\/\/wp.dbuniversity.ac.in\/dept-of-economics\/?p=3561"},"modified":"2026-04-25T06:29:34","modified_gmt":"2026-04-25T06:29:34","slug":"artificial-intelligence-and-the-future-of-economics","status":"publish","type":"post","link":"https:\/\/wp.dbuniversity.ac.in\/dept-of-economics\/artificial-intelligence-and-the-future-of-economics\/","title":{"rendered":"Artificial Intelligence and the Future of Economics"},"content":{"rendered":"\n
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By Dr. Abdur Rashid Ahmed*<\/strong><\/p>\n\n\n\n

Introduction<\/strong><\/p>\n\n\n\n

The 21st<\/sup> century is experiencing the colossal change in the entire timeline of world history and human civilization not in the form of Human Intelligence but in the form of Artificial Intelligence (AI). Artificial Intelligence (AI) is no longer a futuristic fantasy, it’s increasingly the dominant driver of how economies operate, develop and generate value. AI is the capacity of computers or other machines to exhibit or simulate intelligent behaviour i.e. human intelligence. Simply, AI is the ability of machines or computers to think, learn and work like humans. It allows the machines to perform tasks such as understanding language, solving problems, and making decisions just like humans (not like robot). However, there are few differences between Artificial Intelligence vs. Human Intelligence. AI can learn many things and solve various problems, but still it lacks emotions and human conscience. But humans can understand feelings, values, and change their behavior but AI cannot.<\/p>\n<\/div>\n\n\n\n

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AI and Economics<\/strong><\/p>\n\n\n\n

The most interesting thing to know is how AI will change or evolve the existing economic theory or to stay relevant in a world where Intelligence can be scaled up in the near future. The interplay of Artificial Intelligence and economics is no longer a luxury, but a necessity for the future of employment, growth and development. AI is reshaping productivity, markets, and the very nature of economic decision-making – both through automation of routine functions and creation of sophisticated insights. Economic theories based on assumptions of rational decision-making and limited information are being tested against systems that can learn, forecast and optimize at a scale never seen before. With algorithms penetrating markets, pricing strategies, jobs, and even government policies, the lines between human and machine-augmented economic activities are now being blurred. This shift raises questions like how it will impact the economic development or how AI will impact inequality or it will affect efficiency in production and consumption while undermining human autonomy.<\/p>\n\n\n\n

The importance of AI in the fields of Economics is diverse. AI is expected to increase the efficiency through automation, improve accuracy through reduced human error, enhance decision-making through data analytics, provide 24\/7 services or making availability through continuous operations, supports consumers and producers with disabilities, making smarter decisions for investment, content creation through generative AI, creating creative ideas, solving global economic problems and so many. All these benefits can be, in economic perspective, categorized as enhancement decision-making, cost reduction through greater productivity and efficiency, improved risk and management strategy through optimal choice, improving market information reducing the market asymmetry which eventually eliminates the market imperfections and negative externalities. The potential changes in the domain of Economics in the current AI-powered economic environment will include the following aspects.<\/p>\n\n\n\n

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  1. Better resource management \u2013 Solution to scarcity issue of economics<\/li>\n\n\n\n
  2. AI-powered economic forecasting – Precision prediction<\/li>\n\n\n\n
  3. Multidimensional changes in growth theories due to greater productivity in production – Automation<\/li>\n\n\n\n
  4. Rapid transformation of financial systems \u2013 AI-powered transaction and detection<\/li>\n\n\n\n
  5. Shift in global supply chains \u2013 Innovative global supply chains<\/li>\n\n\n\n
  6. Real-time data analysis and policymaking – Data Analytics<\/li>\n\n\n\n
  7. AI-enhanced data-based economic planning Smarter economy, smarter planning<\/li>\n\n\n\n
  8. Expansion of gig and freelance economy – Gig economy growth<\/li>\n\n\n\n
  9. Proper regulation of disruptive pressures on economy – Optimal control of inflation and deflation<\/li>\n\n\n\n
  10. Rise of platform-based markets and economies Digital marketplaces<\/li>\n\n\n\n
  11. Rise of entrepreneurial activities – Faster innovation, etc\u2026<\/li>\n<\/ol>\n\n\n\n

    Impact of AI on Indian Job Market<\/strong><\/p>\n\n\n\n

    The impact of AI on jobs market and the need for a proper manpower planning for future-ready workforce is a pressing matter in today\u2019s world. The Future of Jobs Report 2025 published by the World Economic Forum in 2025 revealed a host of interesting facts about the future job market and economic change.  The report is based on 1,000 leading global employers, 14 million workers across 22 industry clusters and 55 economies from around the world to examine how these macrotrends impact jobs and skills, and the workforce transformation strategies, employers plan to embark on in response, across the 2025 to 2030 timeframe. The study finds that approximately 22% of current jobs in the world will undergo significant changes with 39% skill disruption due to structural labor-market transformations. Hence, an estimated 170 million new jobs will be created, while 92 million jobs are expected to be displaced, resulting in a net increase of 78 million jobs globally by 2030.<\/p>\n\n\n\n

    The report also discussed that the digital access of the Indian citizens will increase by 60% in the next couple of years but the cost of living will increase 50% and geoeconomic fragmentation and geopolitical tensions will increase by 34% along with several demographic shifts including the Indian labour markets. Hence, India must prepare for the future workforce improving and introducing new aspects of manpower including analytical thinking, creative thinking, technological literacy, cybersecurity skills, big data proficiency, resilience, flexibility, and agility and curiosity and lifelong learning through enacting new laws, budget allocation and proper implementation and monitoring starting from now.<\/p>\n\n\n\n

    Conclusion<\/strong><\/p>\n\n\n\n

    To sum up, we must say there are major changes in the world in this era of AI which includes technological change, green transition, geoeconomic fragmentation, demographic shifts. Hence, the transformation of the jobs and skills landscape will have significant impacts on businesses, industries, governments and workers worldwide contributing to skill instability. To control the ongoing skill instability, the government should bring skill stability through skill revolution in the education system aligned with industry-based need. But anyway there will positive net job growth in the world in presence of AI and we just need to upgrade through upskilling and reskilling.<\/p>\n\n\n\n

    [*The author is a Senior Assistant Professor at the Department of Economics in Assam Don Bosco University. He may be reached at<\/em> abdur.ahmed@dbuniversity.ac.in<\/a>]<\/p>\n\n\n\n

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