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Robotics and Artificial Intelligence: A New Economic Order

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  • Intan Murnira Ramli

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Mohamad Izahar Mohamad Izham

Abstract

Various technological advancements have revolutionised how businesses operate and how people live and work. In recent years, significant advancements have occurred regarding industrial robotics and artificial intelligence (AI). The adoption of robotics and AI positively impacts productivity at both firm and national levels through increased precision and cost efficiency. While these technologies have the potential to substantially enhance productivity and to facilitate trade in goods and services, this paper also looks at the research on their impact on workers, wages, and economic welfare. Indeed, the extensive and uneven effects of robotics and AI on different skill sets have become a focus of economic research, which has explored how these technologies may yield outcomes that differ markedly from previous technological advancements. The research shows that adoption of robotics and AI does facilitate trade in goods and services, but their impact on the labour market, employment, and wages depends on the preparedness of both governments and the workforce to embrace cutting-edge technologies, including AI and super AI. Latest Articles

Suggested Citation

  • Intan Murnira Ramli & Mohamad Izahar Mohamad Izham, 2025. "Robotics and Artificial Intelligence: A New Economic Order," Working Papers PB-2025-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:pb-2025-03
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    References listed on IDEAS

    as
    1. Matt Taddy, 2018. "The Technological Elements of Artificial Intelligence," NBER Working Papers 24301, National Bureau of Economic Research, Inc.
    2. Matt Taddy, 2018. "The Technological Elements of Artificial Intelligence," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 61-87, National Bureau of Economic Research, Inc.
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