The Political Economy of Artificial Intelligence
Habib Badawi, Ayman Majzoub · 19 Jun 2026
Where this sits in the debate
Direction of the finding as read from the abstract by an AI model (AI-written).
Key takeaway AI-written
This book chapter applies the varieties-of-capitalism framework to argue that AI's development and labor-market effects are mediated by institutions. It describes liberal market economies as pairing rapid AI breakthroughs with skill-biased disruption, and coordinated market economies as integrating AI more incrementally with stronger worker protections.
Abstract
This analysis explores how varying market structures and institutional frameworks shape both the development trajectory of artificial intelligence (AI) technologies and their subsequent impact on labor markets and economic development across different market economies. Building upon the varieties of capitalism framework, the study examines how institutional configurations in liberal market economies (LMEs) and coordinated market economies (CMEs) create distinct patterns of AI innovation, labor market adaptation, and power dynamics. The findings reveal that AI development is not a technologically determined phenomenon but is rather institutionally mediated, leading to divergent socioeconomic outcomes. LMEs exhibit rapid, breakthrough innovations in AI alongside skill-biased technological change and labor market disruption, while CMEs demonstrate more systematic integration of AI technologies with incremental adaptation strategies and stronger worker protection mechanisms.
About this publication
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- Published
- 2026 (4 months ago)
- Citations
- 0 (OpenAlex)
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