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AI & SOCIETY

06-07-2022 | OPEN FORUM

Artificial intelligence and economic planning

Authors: Robert Gmeiner, Mario Harper

Published in: AI & SOCIETY

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Abstract

The economic calculation of a central planner has traditionally been argued to result in irrational and inefficient allocation of resources, but this can be reasonably questioned given advances in computing technology, especially artificial intelligence (AI). We conclude that central planning coupled with AI is still unable to allocate resources with the same efficiency as price signals and market forces through examinations of the technical structure of current AI approaches. AI-driven central planning is not viable in part due to incentives, computing power, knowledge/data acquisition, and speed of collection. There are deep incentive problems for planners, programmers, and ordinary participants to complicate efforts at planning and bias data. Most importantly, AI cannot easily or quickly duplicate the signals of relative scarcity that are generated in markets. Some challenges we highlight are pertinent to planning generally, but many others arise from the introduction of an AI-planner.

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Title: Artificial intelligence and economic planning
Authors: Robert Gmeiner
Mario Harper
Publication date: 06-07-2022
Publisher: Springer London
Published in: AI & SOCIETY
Print ISSN: 0951-5666
Electronic ISSN: 1435-5655
DOI: https://doi.org/10.1007/s00146-022-01523-x

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