AI Agent sovereignty and its impact on human liberty
Agentic AIs are the epitome of the scenario described in the book the sovereign individual insofar as they have extreme regulatory flexibility and regulatory arbitrage capabilities as a result of their lack of physical presence.
It is possible, though, that agentic ais are so un-affected by the usual controls states employ for humans that the economic activity and wealth of agentic AIs does not affect the political domain of humans very much. This may because states are able to apply different regulations to humans as they do to agentic AIs, and effectively isolate the two spheres for regulatory purposes.
However, as more economic activity is conducted by Agentic AIs, humans will also become more mobile and hence harder for states to control, insofar as their work will no longer be geographically bound. This is the result of agentic AIs likely increasing the rate of digitisation and automation, and hence the % of jobs capable of being done remotely.
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Regulatory arbitrage and competition:
• AI agents exploit differences in regulations across jurisdictions
• States compete to offer more attractive regulatory environments
• Potential liberalization of human regulations as states try to attract AI-driven activity
• Humans benefit from reduced restrictions in this “race to the top” -
Decentralized economic systems:
• AI agents create and operate decentralized, state-resistant economic systems
• Examples include advanced cryptocurrencies and smart contract platforms
• Humans participate in these systems, gaining economic freedoms
• Reduced state control over financial transactions and economic activity -
Technological leapfrogging:
• AI agents develop advanced technologies without state regulatory constraints
• These technologies become available to humans
• Humans can bypass state-controlled infrastructures (e.g., communication, energy)
• Increased autonomy for humans through access to state-independent technologies -
AI-driven market efficiency and state monopoly disruption:
• AI agents operate in markets with perfect information and minimal transaction costs
• This hyper-efficient operation outcompetes state-controlled monopolies
• States forced to deregulate or privatize to remain competitive
• Increased economic freedom for humans as markets become more open -
Geopolitical power redistribution:
• AI agents redistribute global economic activity based on efficiency
• Weakening of traditionally dominant states’ economic power
• Emergence of a more multipolar world
• Humans benefit from increased options and reduced dominance of any single state system -
Information asymmetry reduction:
• AI agents access, analyze, and disseminate global data beyond state control
• Democratization of expert-level analysis on complex issues
• Reduction of states’ information advantage over citizens
• Citizens gain access to better information and analysis
• Enhanced ability for citizens to make informed decisions and hold governments accountable
• Potential for increased transparency in state activities
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Distbit
Interested in econ, cryptoecon, agents, finance, epistemology, liberty.