Artificial Intelligence

The United States government launched the American AI Exports Program to help American firms win contracts from international customers. In a bid to enhance international competitiveness, the program risks stifling domestic competition, writes Javaid Sofi.

Sarah Kreps argues that elected officials should be cautious of immediately rejecting proposals for local data centers. Instead, officials should capture potential benefits and protect residents by negotiating for better terms.

The artificial intelligence industry recently called for an antitrust exemption to coordinate self-regulation as the risks their models pose to the internet and society...

Artificial intelligence agents are beginning to interact in ways that create risks beyond individual misalignment with corporate and social expectations. As happened with global finance after the 2007 crisis, AI governance needs to begin focusing on how good agents can still produce bad systems.

Responding to Mark Lemley and Jacob Noti-Victor, Shishene Jing argues that licensing deals struck by incumbent artificial intelligence firms with content owners will not disadvantage smaller AI rivals. Even if such deals establish a legal precedent requiring licenses, content owners have little incentive to actually sue small, cash-poor AI startups, making the precedent toothless in practice.

In a new working paper, Benjamin Verschuere and Angus Cameron argue that the wide dispersion in economists' forecasts for the impact of artificial intelligence on the economy stems from two gaps. The first is that estimates for growth, jobs, and prices are each built in isolation, with no single framework to reconcile them. The second is that models fixate on AI’s current capabilities, rather than on how fast it spreads and how much of a given job it can eventually reach. The authors build a unified framework that predicts roughly $2 trillion in long-run output gains, the loss of about 20 million American jobs, and falling prices.

Investors have poured billions into using artificial intelligence to discover new drugs, and 2026 is the first real test of whether AI-designed medicines actually helps patients. The boom has genuinely transformed the search for molecules — but that was never the costly, failure-prone part of making a medicine, and there AI has so far had little to add. Capital, and the public subsidies have not yet priced the difference, writes Michael A. Santoro.

Microsoft CEO Satya Nadella’s argument that businesses need to be able to easily switch between artificial intelligence models is correct but elides the fact,...

The competitiveness of the artificial intelligence market at first glance masks how investment arrangements and partnerships between the largest players risks undermining their incentives to compete. Regulators must continue to monitor these arrangements for anticompetitive effects, writes Shishene Jing.

In new research, Christos Makridis and Andrew Johnston find that industries exposed to generative AI are seeing an increase in production, employment, and wages. However, the majority of AI-driven revenue growth is channelled back to capital as profits, rather than to workers.