The Transformative Effect of Artificial Intelligence on Economic Structures and Business Models

Ashish J Ranjan

Authors

Ashish J Ranjan Research Scholar, LNM Institute of Information Technology, India Author

Keywords:

Artificial Intelligence (AI), Economic Structures, Business Models, Market Dynamics, Employment Patterns

Abstract

Artificial Intelligence (AI) is profoundly reshaping economic structures and business models, marking a transformative shift in contemporary industries. This research paper explores the extensive impact of AI on market dynamics, employment patterns, and business practices. It examines how AI enhances operational efficiency, drives innovation, and introduces new business models while also challenging traditional practices. The paper delves into sectoral transformations across healthcare, finance, manufacturing, retail, and transportation, illustrating AI’s role in optimizing operations and creating new opportunities. Furthermore, it addresses critical ethical and regulatory challenges, including privacy concerns, algorithmic bias, and the need for transparency. By analyzing these facets, the paper highlights the dual nature of AI’s influence—both its potential to drive economic growth and its necessity for responsible management. The findings underscore the importance of balancing innovation with ethical considerations and robust oversight to ensure that AI technologies contribute positively to societal and economic well-being.

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