The Political Economy of Artificial Intelligence

Edited by: Ajay Agrawal, Joshua Gans, Avi Goldfarb, Catherine E. Tucker

ISBN: 9780226847047
Published: 2026
Format: Hardback, 224 pages
Language: English
Publisher: University of Chicago Press (National Bureau of Economic Research Conference Report)

An authoritative look at how artificial intelligence both shapes and is shaped by the political and economic forces of the modern world. As the effects of AI are felt across economies and societies, many of its ramifications are still emerging. This volume brings together economists and political scientists to examine how AI intersects with regulation, military power, and political identity — offering analytical frameworks and identifying key open questions for future research.

The contributions address the allocation of property rights for AI inputs, trade-offs among alternative regulatory regimes, and the role of interest groups in shaping the technology's trajectory. They explore how AI-related capabilities influence military effectiveness and bargaining power among nations, and consider AI's effects on political preferences, from AI-curated information to targeted political advertising.

Contents: Part I — The Political Economy of AI Regulation (data as the new oil, regulating algorithms, algorithmic fairness); Part II — AI and Military Power (battlegrounds for AI, military automation); Part III — AI and Political Identity (nation building, robotization and political response, AI and social media).

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Q&A

Who is this book for?
Economists, political scientists, policymakers and researchers studying AI's societal and geopolitical impact.

How does it follow up on the 2019 volume?
It's edited by the same core team (Agrawal, Gans, Goldfarb) plus Catherine E. Tucker, shifting focus from productivity economics to AI's political and geopolitical dimensions.

What topics does it cover?
AI regulation trade-offs, military effectiveness and bargaining power, and AI's influence on political identity and preferences.

Is this a NBER Conference Report?
Yes, part of the National Bureau of Economic Research Conference Report series, published by University of Chicago Press.

Who are the editors?
Ajay Agrawal, Joshua Gans and Avi Goldfarb (University of Toronto), and Catherine E. Tucker (MIT).

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