AI Economics

Concept

Relational economy

The relational economy is the part of the economy in which attention, provenance, trust, and a relationship with a real person are features of the product rather than avoidable production costs.

Explanation

A machine may be able to make coffee, teach a lesson, or produce an artwork, while some customers still value a barista, teacher, or craftsperson precisely because the experience is human and personal.

Alex Imas argues that when automation makes commodity production cheap and raises real incomes, demand can move toward this relational sector. This is a scenario of structural change, not a guarantee that labor’s total income share stays constant or that displaced workers transition easily.

Sources