Artificial Intelligence Impacts on the Capacity of International Political Economy Actors

Artificial intelligence (AI), one of the most significant technological advancements of the current century, has profoundly and broadly impacted various aspects of international political economy (IPE). A key impact is the fundamental transformation of actor capacity within this domain. This study aims at examining the impact of AI on the capacity of IPE actors. The main question is: How has AI altered actor capacity in the international political economy, and what implications does this hold for traditional structures of power and agency? The research hypothesizes that AI is fundamentally shifting actor capacity from human to post-human (i.e., machines and AI-driven systems). The research employs a qualitative and descriptive-analytical method, with data collected through investigating existing literature, scholarly articles, key reports, and case analyses. The findings reveal that AI has generated novel post-human capacities for actors that were previously nonexistent. These impacts include the diminishing role of states as main traditional actors, the empowerment of transnational institutions and multinational corporations, and the emergence of a new environment for intelligent action. In conclusion, AI has empowered actors with improved and rapid decision-making capabilities in complex IPE through enhancing data processing precision, speed, and analytical power, which is particularly evident in areas such as international trade, economic policymaking, and global crisis management.

Introduction

Artificial intelligence (AI), as one of the most prominent technologies of the current century, has transitioned from theoretical concepts into an effective reality in international interactions. One area directly impacted by this technology is international political economy (IPE), specifically the capacity of national(state) and transnational actors. Historically, agency in IPE relied on human capabilities and traditional tools; however, given the expansion of AI, activities can now be performed through intelligent systems. This evolution raises questions about the changing nature of actors and the transfer of power from human to post-human actors. AI, with its ability to analyze big data and facilitate decision-making, has propelled the capacity of these actors into a new phase. In this regard, the research aims to investigate the impacts of AI on the capacity of actors in IPE. The research question is: What impact does AI have on the capacity of actors in IPE? The hypothesis is that AI is leading to a fundamental transformation in actor capacity, such that the nature of agency is shifting from human to post-human (machines and AI-based systems).

Theoretical Framework

The conceptual analysis of this research is based on two approaches: first, AI as an independent post-human actor, and second, AI as an assistant enhancing actor capacity. In the first approach, AI itself could be recognized as an actor, while in the second approach, AI is a tool. This research, building upon the second approach, presents a conceptual model of the impact of artificial intelligence on actors of IPE, signifying a transition from the era of realist state-centrism and liberal transnationalism to an era of state-evasion. According to this analytical model, the transition from the "pre-AI era" to the "post-AI era" is being established through the integration of AI into the structure of actors and the creation of new capacities for them.

Methodology

This research employs a qualitative, descriptive-analytical method. Relevant data were gathered and examined through a study of existing sources, including articles, reports, and case analyses. A comparative method was also utilized to analyze the differences in actor capacity between the pre- and post-AI eras. Specifically, the traditional human decision-making process was compared with new decision-making models based on machine learning algorithms, data mining, and predictive analytics.

Results & Discussion

To study systematically, this research utilized two key indicators: the impact of AI on decision-making processes in IPE, and the impact of AI on the speed and effectiveness of decision-making. Here, the findings indicate a fundamental transformation in actor capacity. The most significant areas impacted by artificial intelligence include:

Intelligent Decision-Making: AI is changing the seven-stage human decision-making processes. Instead of manual and limited human analysis, intelligent tools analyze vast amounts rapidly, providing diverse options to decision-makers.
Increased Speed of Decision-Making: One of AI's achievements is its significant acceleration of the decision-making process and increased accuracy in its execution.
Formation of New Technological Competitive Blocs: A new competition is emerging among states, tech-companies, transnational institutions, and non-state actors on data dominance, investment in AI, new technology production, and the setting of governance standards.
Shift in Global Power Structure: AI is diminishing the role of states as the main traditional actors while strengthening transnational actors such as multinational corporations. These developments are redefining power structures and have led to the formation of competitive regional blocs (e.g., China, the U.S., Europe, Asia).
Dynamic New Environment to Act: Entry into the smart environment of the global economy requires understanding the complexities arising from AI and optimizing its use in areas such as international trade, economic growth, labor market changes, and global governance. This new environment has elevated agency to a post-human level through combining technological, political, and economic factors.


Conclusions

This research confirms that AI is fundamentally shifting the capacity of actors from human to post-human (AI-based systems). This transformation is driven by AI's central role in decision-making, data analysis, wealth generation, and governance. Consequently, transnational actors have leveraged AI to significantly strengthen their economic and political positions, in some cases even gaining dominance over national actors. Conversely, states are now compelled to rapidly develop their technological infrastructure and formulate new policies to adapt to this global "smart" environment. This transfer of power from states to intelligent non-state actors highlights an urgent need to re-evaluate traditional concepts of sovereignty, international economics, and politics. In conclusion, AI has not merely altered the tools of decision-making; it is establishing the groundwork for a new global order where data, algorithms, and speed are the primary determinants of power. These profound transformations necessitate the establishment of new regulatory frameworks, foster global cooperation in technology governance, and require a critical re-evaluation of national development strategies to both harness AI's benefits and mitigate its potential negative consequences.
Ethical Considerations
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Funding
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Conflict of interest
The authors declare no conflict of interest