Thursday, August 21, 2025

Artificial Intelligence Can’t Replace Free Markets. Really!

Wrong suggestion! However, some clever minds (incl. nutty professors) suggest to use AI as an omniscient central planner.

Very possibly, in the near future AI systems will compete against each other to execute economic transactions like humans do today.

The claim that AI systems unlike humans are not dynamic and forward-looking is bogus. This is only a matter of time that AI models will be able to do that too.

"Imagine artificial intelligence controlling the economy. That’s the future envisioned in three recent manifestos.
Law professor Ted Parson introduces “Max,” an AI that overlays markets with Pigouvian price tweaks—taxes here, subsidies there—until every externality is neutralized.
Computer scientist Spyridon Samothrakis proposes a mesh of data hubs and reinforcement-learning schedulers to guide economic coordination, resource allocation, and production.
And economist Leo Schlichter argues that an AI system could reduce output, respect ecological limits, and meet human needs through participatory dashboards and feedback loops.
Their pitch is straightforward: AI can help to replace the function of prices and the free market that generates them. ..."

Artificial Intelligence Can’t Replace Free Markets "Algorithms process data from the past while economic decisions are dynamic and forward-looking."

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