Legal frameworks for AI-driven markets and their challenges and opportunities in the digital economy
Legal frameworks for AI-driven markets and their challenges and opportunities in the digital economy

Summary/Abstract: The speedy inclusion of artificial intelligence (AI) in international markets has brought about unparalleled challenges and prospects, hence the need to develop flexible legal systems. AI-powered markets transform conventional economic structures by facilitating algorithmic trade, autonomous decision-making, and data-guided business models. Nevertheless, these developments present regulatory concerns regarding responsibility, bias, intellectual property rights, and market competition forces. This article discusses the changing legal landscape governing AI in economic applications, exploring both the limitations of existing frameworks and emerging regulatory approaches. One of the key challenges of AI regulation is achieving a balance between legal control and innovation. The traditional tools of regulation are unable to address the autonomous and dynamic nature of AI, invoking concern regarding liability, transparency, and compliance. Moreover, the use of AI in market concentration and algorithmic price setting gives rise to antitrust concerns, necessitating pre-emptive legal intervention to ensure level competition. Conversely, AI provides an opportunity for streamlining regulatory efficiency, automating compliance, and mitigating financial risk through predictive analytics and smart contracts. This study critically assesses global legal frameworks, including the European Union's AI Act, the United States' sectoral regulations, and China's AI regulation policy, against their economic effect. Through an appraisal of legal precedents and current policy debates, the paper presents an equilibrium framework that encourages technological advancement with ethical and economic balance. Lastly, the intersection of AI, economics, and law calls for a changing regulatory environment that provides room for innovation without undermining market integrity. Surmounting these challenges is essential to having a healthy digital economy that boosts the fortunes of businesspeople, consumers, and policymakers.

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