Economic Policy Challenges in the Age of Artificial General Intelligence

Kai Ye

doi:10.63944/8fcm.AIA

Economic Policy Challenges in the Age of Artificial General Intelligence

Kai Ye (Primary Contact)

School of Compuer Science, Hezhou University, China

DOI:https://doi.org/10.63944/8fcm.AIA

Keywords:

Artificial General Intelligence, Economic policy, Labor Markets, Education

Published

31-12-2025

Abstract: We stand at the forefront of a transformative scientific and technological revolution. The rise of Artificial General Intelligence (AGI) presents unprecedented challenges to current economic theories and policies. The capabilities of AI are rapidly expanding, and AGI will achieve cognitive abilities surpassing human levels across various fields, altering the global economy and the current labor market structure. This paper aims to explore the fundamental economic impacts of AGI, focusing particularly on its disruption of the traditional labor market, the erosion of human capital value, and the resulting income distribution and inequality issues. This paper proposes a framework for understanding how AGI shifts traditional factors of production from labor to machines, discusses the role of education in society's response to such changes, the potential environmental impacts, and the necessity of building new global governance structures. Therefore, the transformation of the AGI-driven economy requires reflection on the nature of human work and social values.

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Economic Policy Challenges in the Age of Artificial General Intelligence

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