Systemic Digitalization of Economic Mechanisms: The Impact of Information Technologies and Artificial Intelligence

1 Systemic Digitalization of Economic Mechanisms: The Impact of Information Technologies and Artificial Intelligence Sergey Parinov, CEMI RAS, [email protected], https://www.linkedin.com/in/sergey-parinov/ Abstract: Most existing studies of generative artificial intelligence (AI) and information technologies (IT) impact on the economy, focused on the automation of work processes with implications for employment, wages, and productivity. This article broadens the analytical perspective by examining how IT/AI influence the economy through the transformation of economic mechanisms—regulatory structures that ensure coordination and management of joint activities. Drawing on the Institutional Analysis and Development framework, the paper proposes a methodology for describing the universal functions of economic mechanisms and their associated information processes. The information processes are conceptualized as the targets of digitalization, aimed at reducing transaction costs, enhancing productivity, and improving the adaptability of the economy to external changes. The study presents an approach for selecting IT/AI solutions capable of increasing the efficiency of economic mechanisms and introduces the concept of systemic digitalization as a tool for sustainable economic growth. Finally, the paper outlines a “social order” directed at the IT/AI industry— a set of solutions whose implementation may yield substantial positive macroeconomic effects. Keywords: economic mechanisms, information processes, IT/AI solutions, institutional analysis JEL: O33, D02, L86, D23 1. Introduction Recent innovations related to generative artificial intelligence (AI) and large language models have prompted a surge of publications discussing the emerging opportunities for digitalization and automation of socio-economic activities. In particular, analyses examine AI-related consequences for macroeconomics, potential productivity growth in the economy, wages, inequality, and other factors (Goldman Sachs, 2023; McKinsey Global Institute, 2023; Korinek & Suh, 2024; Agrawal, et al., 2023; Bick, et al., 2025; Acemoglu, 2025). Virtually all of these studies express high expectations regarding the positive impact of AI on socioeconomic indicators in the coming years. Contrasting with the general tenor of these publications are the assessments by Daron Acemoglu. He forecasts productivity growth, which for him is synonymous with cost savings, of less than 0.53% over the next 10 years (Acemoglu, 2025). Evaluating AI's impact on wages and inequality, Acemoglu argues that this may lead to increased rather than decreased inequality (ibid.). GDP growth, as Acemoglu notes, is expected to range from 0.93% to 1.16% over a total of 10 years. Under certain conditions, the upper bound of GDP growth may increase to approximately 1.4%–1.56% (ibid.). Acemoglu's estimates result from analyzing the consequences of AI's impact on tasks performed by participants in collaborative activities during the production of final goods. Such "tasks" can also be viewed as types of jobs that constitute the structure of the final goods production process. Acemoglu estimates that AI's impact may manifest in 5% of job 2 types in the U.S. economy, while other researchers suggest approximately 20% (Dizike, 2024). However, there exists a sphere within the economy where AI implementation affects virtually 100% of jobs: the integration of AI in combination with information technologies (IT), which we shall designate as IT/AI, into the functioning of various established forms of economic relationship organization and into diverse regulatory structures and mechanisms (hereinafter referred to as economic mechanisms). The conceptual framework of "economic mechanism" in this context corresponds to the works of (Hurwicz & Reiter, 2006; Williamson, 1975; Ostrom, 2005). According to these studies, economic mechanisms emerge and operate as a result of specific regulatory human activities that utilize: (a) established common rules; (b) developed skills; and (c) IT in the broad sense. Economic mechanisms in this context include network structures (Powell, 1990; Granovetter, 1983; Provan & Kenis, 2008), hierarchical organizations (Malone and Crowston, 1994; Weigand et al., 2003), markets (Powell, 1990; Williamson, 1975), common behavioral rules acknowledged by individuals, as well as institutions functioning as regulatory structures (Coase, 1998; North, 1995; Williamson, 2000; Ostrom, 2005). When applied to economic mechanisms whose coordination and governance/management functions arise from certain regulatory human activities, the utilization of IT/AI solutions enables the automation of specific components of this regulatory activity. The functioning of economic mechanisms, in numerous cases, is predicated upon processes of exchange, processing, and analysis of weakly structured information originating from various sources. The application of IT in these processes allows participants in joint activities (JA) to economize time and various categories of expenditures: a) on communications and information exchange (user interactions), b) on information processing (identification of important aspects, pattern recognition, trend detection), c) on users’ information manipulation (simulation of possible scenarios of users’ interactions), and so forth. Additionally, AI methods (in the broad sense) enable the faster and more accurate identification of related entities within large volumes of unstructured data. AI can interact with users in sophisticated ways to obtain information about their intentions and capabilities, which may be crucial for determining the content of all participants' activities, for substantiating participants' decisionmaking processes, and so on. Considering this, the use of IT/AI to improve the characteristics of economic mechanisms may lead to: • Enhanced overall productivity of economic actors at both individual and organizational levels; • Reduced losses from uncoordinated actions; • Decreased costs of coordination and maintaining balance in the economy under conditions of accelerating scientific and technological progress, thereby enabling the economy to adapt more effectively to changing conditions; • Improved effectiveness of all types of JA through more comprehensive consideration and utilization of important factors, including information distributed among participants regarding their knowledge, skills, resources, and investments. The potential scale of effects from implementing IT/AI solutions can be assessed through survey results of managers and engineers in the aerospace industry. It is noted that in large complex projects, coordination-related activities consume approximately 69% of an engineer's time (Crabtree et al., 1997, p. 83). The same study provides an estimate that coordination problems increase project implementation time by approximately 20-30%. It can 3 be assumed that increasing the mechanisms efficiency through automation based on IT/AI solutions can evidently substantially reduce the proportion of managers' costs allocated to coordination, as well as minimize time and resource losses in implementing large and complex projects. To realize these theoretical opportunities in practice, it is necessary to determine which specific IT/AI solutions would yield the best systemic results for improving the efficiency of economic mechanisms. An approach is proposed in which information processes that ensure the functioning of mechanisms serve as the key element for addressing this challenge. Such information processes are, by definition, the object of different IT/AI solutions implementation. The results of applying modern computer-based IT/AI solutions in this manner will be termed digitalization of economic mechanisms. In this study the description of information processes occurring within economic mechanisms is derived from the content of six universal functions of economic mechanisms, which, in turn, are obtained from the institutional design principles of the "Institutional Analysis and Development" (IAD) framework (Ostrom, 2005). The adopted hypothesis regarding the existence of universal functions of economic mechanisms does not contradict the observed diversity of economic mechanism types since this diversity is explained by differences in methods of implementation of the universal functions. This methodological approach, whereby universal functions of mechanisms are first defined, and information processes are subsequently derived from these functions, possesses at least two important qualities: a) The description of information processes based on universal functions of mechanisms also possesses the property of universality and can be applied to the operation of a large number of mechanisms functioning within the economy; b) The methods of implementing universal functions of mechanisms based on IT/AI solutions determine mechanism efficiency, which allows us to analyze various IT/AI solutions based on their capabilities to improve the efficiency of mechanisms. Based on this methodology, for each information process associated with performing the six universal functions of mechanisms, its general possible influence on mechanism cost magnitudes and JA benefits has been examined. Considering this, IT/AI solutions have been proposed for specific automation of corresponding information processes. The proposed solutions ensure enhanced mechanism efficiency through various possibilities for reducing costs associated with the operation of mechanisms, as well as using the capabilities of mechanisms to increase the JA benefit. As a result of increasing the efficiency of mechanisms, the adaptability of the economy to unpredictable changes increases. Conditions arise for the evolution of the existing structure of economic mechanisms and for other positive changes in the economy. The conducted research enabled the formation of an initial version of the concept for systemic digitalization of economic mechanisms. The objective of this concept is to propose for discussion within the scientific community requirements for IT/AI solutions whose development and implementation promise significant growth in economic mechanism efficiency, increased overall productivity, and, so, the emergence of an additional source for economic growth. 4 Some of the IT/AI solutions identified through this study do not yet exist. Their content is proposed to be formalized in the form of a "social order" for the IT/AI industry. Discussion of the required IT/AI solutions list in the context of expected positive economic consequences from enhanced mechanism efficiency may create motivations for their expedited implementation and for conducting digitalization of economic mechanisms. The study is dedicated to a new, still-emerging field of research. Partly due to this circumstance, its current findings remain relatively general in nature and are primarily intended to delineate promising research directions. Further investigations on this topic presuppose the development and deepening of all three components: methodology, conceptual framework, and the substance of the "social order". The following section presents descriptions of the universal functions and information processes of economic mechanisms, and it discusses their impact on the efficiency of the mechanisms. The third section describes the concept of systemic digitalization of economic mechanisms. The fourth discusses the main research outcomes. The conclusion summarizes findings and briefly lists directions for further research. 2. Information Processes and Efficiency of Economic Mechanisms To describe information processes occurring within economic mechanisms, we shall define the functional content of mechanisms that is common to mechanisms of different types and that can be derived from the content of the IAD framework. In accordance with general conceptions regarding the purpose of economic mechanisms, their functions should enable participants in JA to determine the content of their individual activities. When defining the content of JA, it is necessary, insofar as possible given the bounded rationality of individuals, to account for the capabilities and intentions of all participants, as well as other factors significant to JA. Obviously, such functions correspond to the widespread understanding of coordination processes. The content of JA and the coordination process itself are subject to various unpredictable changes. Thus, in addition to ensuring coordination, mechanisms must possess functions for adaptation to occurring changes. To ensure sustainable benefits acquisition, such adaptation should include changes in participants' individual activity content, i.e., possibilities for JA recoordination. Also, the adaptation should have ability to change the mechanism's design. Such an additional set of functions relative to the coordination corresponds to the generally accepted understanding of the governance/management process of economic mechanisms. Based on this, the set of universal functions of economic mechanisms should determine the coordination and governance/management of JA. The institutional design principles of IAD, which result from generalizing the reasons why some institutions (in the role of economic mechanisms) prove successful and sustainable while others do not (Ostrom, 2010, p. 652), allow for specification of the set of functions implementing coordination and governance/management processes of economic mechanisms. The functions obtained in this manner can be considered universal for different types of mechanisms, since they are derived based on IAD concepts of "universal building blocks" that underlie "social interactions in markets, hierarchies, families, sports, legislatures, elections, and other situations" (Ostrom, 2005, p. 5). 5 2.1. Coordination Functions Among the eight institutional design principles of IAD, principle number three directly relates to coordination functions: "3. Collective-choice arrangements" (Ostrom, 2005, p. 259). This principle addresses the necessity of organizing a collective choice process, which is one of the key components of JA coordination. Details about the method of collective choice implementation are presented in IAD as a model of the individual, which includes the following components (Ostrom, 2005, p. 103): 1. “The way participants acquire, process, represent, retain, and use information; 2. The valuations participants assign to actions and outcomes; and 3. The decision-making processes (maximizing, satisficing, or using diverse heuristics) that participants use to select particular actions or strategic action chains based on their resources”. These three components of the individual’s model represent an information process consisting of information collection and processing stages necessary for "selecting particular actions", the result of which is specific JA coordination. Thus, to implement coordination, the mechanism must provide participants with opportunities and means to account for factors significant to JA, including information distributed among them. This requires participants to exert efforts and use specific means for collecting and processing information necessary for collective choice. The information obtained in this manner is analyzed, which involves playing out possible interaction scenarios. For example, in the form of mental simulation of possible actions. During such simulation, participants evaluate anticipated benefits from various JA options, as well as associated costs, including mechanism costs. Based on the obtained evaluations, participants can (for example, through enumeration methods and/or using heuristics) select preferable JA content and coordinate final decisions about their individual activity content. The coordination method depends on constraints imposed by JA specifics. For example, for a small number of participants, coordination, as organized in network and hierarchical organizations, may occur through "face-to-face" negotiations and agreements. If there are too many participants for "live" information exchange, but they have a common environment, coordination may proceed through trial and error via the common environment. This is how market coordination works, for instance, based on Walrasian tâtonnement (Hurwicz & Reiter, 2006). If for some reason the listed coordination methods cannot be used, participants may determine their individual activity content based on common rules, assuming that other participants act similarly. This is how institutions perform coordination in the role of economic mechanisms. Based on this, the necessary set of mechanism functions for implementing the procedure of determining participants' activity content and their coordination contains three functions: • Accounting — accounting for individual capabilities, intentions, and current activities of participants; • Choosing — selection of optimal joint activity variants based on expected benefits and costs; • Coordinating — coordination of the selected variant to achieve coordinated individual actions. 6 This list of functions is proposed for consideration as initial and minimally necessary for implementing coordination. It may be supplemented and/or detailed within the framework of further research. 2.2. Governance/Management Functions In the most general terms, governance/management functions (hereinafter referred to as governance functions) within the mechanism ensure maintenance of stable benefits acquisition from JA under conditions of unpredictable changes. Similar purposes are served by IAD design principles numbered 4, 5, and 6: • "4. Monitoring. Monitors, who actively audit biophysical conditions and user behavior, are at least partially accountable to the users and/or are the users themselves" (Ostrom, 2005, p. 259). • "5. Graduated sanctions. Users who violate rules-in-use are likely to receive graduated sanctions (depending on the seriousness and context of the offense) from other users, from officials accountable to these users, or from both" (ibid.). • "6. Conflict-resolution mechanisms. Users and their officials have rapid access to low-cost, local arenas to resolve conflict among users or between users and officials" (ibid.). The listed design principles define conditions for sustainable implementation of decisions made by participants regarding the content of their JA. Corresponding economic mechanism functions obviously follow from these principles. However, to logically connect these functions with coordination functions, it is necessary to explicitly add another principle (function): establishment of participants’ responsibilities for executing the agreed activity content. We assume that the first governance function within the mechanism is the establishment of participants' responsibility — for example, in the form of contracts — for executing agreed decisions. The second function, as indicated in point 4 of IAD design principles, is monitoring the implementation of the JA, as well as possible changes in the conditions for its implementation. The monitoring function creates a feedback effect in the economic mechanism: it enables participants to identify and analyze discrepancies between expected and JA results. With established participants’ responsibility, monitoring allows determination of possible culprits and/or causes of identified deviations. The third governance function combines the content of principles 5 and 6 and consists of implementing measures aimed at maintaining stable benefits acquisition from JA based on monitoring results, including the use of sanctions and conflict resolution mechanisms for this purpose. Consequently, the minimally necessary set of mechanism functions for implementing the governance/management procedure contains the following three functions: • Responsibility — establishment of participants' obligations in implementing agreed JA; • Monitoring — observation of JA implementation and identification of violations; • Sustainability — adaptation of JA content and/or the mechanism to maintain stable benefits acquisition, including the following primary methods: o elimination of violation sources when possible (for example, through sanctions or exclusion of individual participants from JA); 7 o if violation elimination is impossible or too costly — re-coordination of activity considering changed conditions; o if re-coordination does not yield desired results — modification of the mechanism itself for adaptation to occurred changes. This set of mechanism governance functions, like coordination functions, may be supplemented and/or detailed within the framework of further research. Information processes associated with implementing these governance functions have certain similarities with the content of information processes for coordination functions and are examined below. 2.3. Efficiency of Mechanism Functions Implementation All six universal functions of economic mechanisms along with their information processes are presented in the diagram in Fig. 1. This diagram illustrates that the information processes associated with the implementation of coordination and governance functions of economic mechanisms constitute sequential operations of information collection, processing, and utilization. The objective of these interconnected processes is to determine the content of individual activities for all JA participants, taking into account existing opportunities for obtaining maximum possible benefits over time under conditions of unpredictable changes. Figure 1. Universal Functions and Information Processes of Economic Mechanisms Mechanism Costs and JA Benefits Specific methods of implementing mechanism functions and approaches to organizing corresponding information processes (for example, through various IT/AI solutions) influence the formation of both mechanism costs and benefits from JA. Mechanism costs, in this case, have the nature of transaction costs and include costs of information search, negotiation, contract conclusion and execution, monitoring compliance, and similar activities (Coase, 1998; Williamson, 1975). Benefits from JA are understood as the Pareto-introduced concept of preference for one set of goods compared to others. It is assumed that individuals are capable of evaluating which set of outcomes from their JA is preferable to them. Benefits 8 are created by JA. The role of the mechanism is to create conditions for JA participants to obtain expected benefits. Let us represent mechanism costs as time spent by JA participants on implementing mechanism functions. We assume that other types of mechanism costs (resources, investments, etc.) can also be reduced to time costs required for their creation. It is evident that the time resource of participants that they can spend on all types of activities within a given time period (for example, a day) is limited. If part of this limited resource is spent on mechanism operation, participants can spend the remaining part on obtaining benefits. As a rule, costs for mechanism operation cannot be eliminated, since without it participants cannot coordinate the content of their JA to obtain benefits. Thus, the magnitude of JA participants' benefits in first approximation is a function of their total time resource minus mechanism costs. Let us assume that this function can be formally defined. Then costs and benefits can be expressed in identical units of measurement, as corresponding shares in the total limited time resource of participants, which makes formal analysis of their relationship possible. A functional relationship exists between the magnitude of costs associated with mechanism operation and the magnitude of benefits obtained from JA regulated by this mechanism. Increasing the completeness of accounting for information distributed among participants (Hayek, 1945) and other factors important for JA, on one hand, increases the probability of obtaining greater benefits from JA, and on the other hand, leads to increased mechanism costs. The relationship between the growth of mechanism costs associated with increasing completeness of accounting and benefit growth is nonlinear. The increment in costs for increasing completeness of accounting begins to exceed the resulting increment in benefits when participants have exhausted existing corresponding opportunities. Under these conditions, participants seek optimal allocation of their limited time resource between costs associated with mechanism operation and obtaining benefits from CA. The allocation where opportunities for increasing benefits at the expense of increasing costs are balanced can be considered an equilibrium. Theoretically, this equilibrium exists because the source of growth for both costs and benefits is the same limited resource of individual time. In the absence of random changes in JA conditions, this equilibrium can be achieved and remain stable. The implementation of universal mechanism functions based on various methods of organizing information processes has a dual impact on costs and benefits: the IT/AI solutions employed can provide both absolute cost reduction and benefit growth, as well as relative improvements, where for given IT/AI solutions, costs are reduced and the achievement of the equilibrium point is accelerated, at which benefits reach maximum value with minimum costs. Mechanism Efficiency In this study, the efficiency of economic mechanisms represents the relationship between the magnitude of JA participants' costs associated with implementing universal mechanism functions and the amount of benefits obtained from JA regulated by the given mechanism. Efficiency is maximized at the equilibrium of cost and benefit magnitudes. However, specific equilibrium values depend both on the method of implementing universal mechanism functions and, consequently, on the method of organizing information processes, as well as on the nature of JA and current conditions for its implementation. Since this optimal 9 relationship must be valid for multiple JA participants, economic mechanisms require consideration of Pareto-maximization efficiency methods. Methods for enhancing mechanism efficiency can be absolute, i.e., based on utilizing the best available implementations of information processes using IT/AI, and/or relative, where for given IT/AI solutions, costs for finding the equilibrium relationship between cost and benefit magnitudes are reduced. For the purposes of this study, it is sufficient to define in general terms how the information processes of universal functions relate to mechanism cost magnitude and JA benefits, i.e., only absolute efficiency enhancement methods are considered. Let us define the parameters of economic mechanism efficiency: 1) the magnitude of costs associated with mechanism operation; and 2) the amount of benefits from JA regulated by the corresponding mechanism. For each of the six mechanism functions, the following section examines the influence of its information processes on these parameters. Impact of Information Processes on Mechanism Efficiency Specific methods for implementing mechanism functions represent combinations consisting of common rules, existing skills, as well as IT in the broad sense (Hurwicz & Reiter, 2006; Ostrom, 2005). Let us examine how one of these components—IT—affects, all other conditions being equal, the magnitude of costs and benefits, which are parameters of mechanism efficiency. Table 1 describes, for the information processes implemented during the execution of six universal mechanism functions, the nature of their influence on the efficiency parameters of economic mechanisms. Table 1. Information processes and efficiency of economic mechanisms Mechanism Functions Information Process of Function Opportunities for Enhancing Function Efficiency Accounting Collection and primary processing of information about factors important for joint activity, including information distributed among participants. Systematization of data about current conditions for joint activity. a) Reduction of time for information collection and processing. b) Improvement of collected information organization. c) Creation of conditions for obtaining greater benefits through greater completeness of accounting for important factors. Choosing Simulation of implementation of possible JA variants to obtain estimates of expected costs and benefits for these variants. Choice of JA variants with better estimates. a) Reduction of time costs for improving the quality of searching for better variants. b) Improvement of accuracy in estimates of expected costs and benefits. Coordinating Information and communication support for decision-making about JA content, taking into account the capabilities and intentions of all participants based on feedback mechanisms. a) Reduction of decision-making time. b) Increased probability of finding the optimal solution variant. Responsibility Information support for establishing responsibility for implementing agreed JA a) Reduction of time costs for analyzing possible violations. 16 • Diagnosis of causes and their classification to determine the nature of required corrections; • Notification and dialogue with JA participants about emerging situations requiring their attention, including recommendations for possible/necessary participant actions. Additionally, demonstration to participants in the simulation model of emerged and possible deviations of JA implementation from expected is required. With ability of participant to conduct model simulations of various scenarios and their influence on JA implementation and benefits magnitude. Role of AI. Dynamic tracking and analysis using AI of emerging deviations of JA results from expected. Assessment of threats and risks. In this case, AI integrated into the simulation model performs the role of control-analytical tool that monitors changes in JA implementation by individual participants, as well as changes in the common environment and conditions for JA. AI can identify unusual situations and patterns that may indicate both problems and emerging opportunities for increasing participant benefits. AI informs participants about detected violations and changes that require them to make decisions about corrections in their JA. c) Sustainability Goal. Enhancing sustainability of obtaining maximum possible benefits from JA under conditions of unpredictable changes, i.e., minimizing losses from changes and approaching total benefits over time to maximum possible values. Current state. Various methods and approaches exist for improving organizations' ability to quickly respond to external environment changes, adapt business models, strategies, and processes. Maintaining sustainable organizational functioning includes enhancing financial stability, improving operational efficiency, developing new markets and products, as well as implementing sustainable development principles. Requirements. Simulation model algorithms, when JA sustainability violations occur, transfer participants to performing mechanism functions, starting with the "choosing" function and continuing through the list. In addition to the requirements described above for "choosing" and "coordinating" functions, which allow obtaining a plan for adapting JA parameters in response to occurring changes, support for implementation of this plan is required. For this, demonstration in the simulation model of the best possible scenarios for implementation of the JA parameter adaptation plan to new conditions is necessary, with the possibility of clarifying this plan when needed. Role of AI. Analysis of actual or expected sustainability violations in obtaining JA benefits based on information received from the "monitoring" function. Development of effective responses to emerging violations, including a list of individual actions for each participant. Within this framework, AI can develop and propose changes to the current economic mechanism design that enhance JA sustainability to various types of unpredictable changes under existing uncertainty conditions. In this case, AI performs the role of coordinatormediator for JA participants' decision-making about methods of adapting their individual activity content to changed conditions for sustainable achievement of maximum possible benefits. 17 3.3. Expected economic consequences from mechanism digitization All the IT/AI solutions considered above, including those currently absent, generally correspond to modern IT/AI development directions and can be created. Let us assume that the described IT/AI solutions will be implemented in the future and digitization of information processes of economic mechanisms of the type described above will become possible. We shall examine possible consequences from using mechanisms in the economy after their digitization. We conduct this analysis for the previously selected type of JA consisting of a large number of participants whose activities are affected by regular unpredictable changes. Modern economies of some countries and large international corporations correspond to these characteristics. From the content of the previous section, it follows that digitization of economic mechanisms generally leads to: • Reduction of time and resource costs associated with mechanism operation; • Greater completeness of accounting for JA-important factors and, consequently, possible growth of JA benefits; • Enhanced adaptability of JA participants to the flow of unpredictable changes and, consequently, growth of cumulative JA benefits over time. Costs for developing the IT/AI solutions are not considered in the analysis below. Cost reduction Automation of mechanism function execution allows saving time, effort, and other participant resources that have the nature of transaction costs. Savings arise in communications and information exchange (user interactions), in information processing (searching for important information, discovering patterns, identifying trends), in information manipulation (simulation of possible participant interaction scenarios), etc. As surveys show, coordination processes in the work of engineers in complex modern productions occupy approximately 69% of time, and coordination problems increase the implementation time of large projects by approximately 20-30% (Crabtree et al., 1997, p. 83). The proposed automation of mechanism functions based on IT/AI solutions can reduce time loss by several times both in engineers' work and in project implementation processes as a whole. Enhancement of benefits Mechanism digitization creates conditions for enhancing JA benefits by various ways: • An analogy can be drawn with the increase in efficiency of physical mechanisms, where reducing friction losses increases the amount of energy that can be spent on "useful" work. In the same manner, reducing economic mechanism costs means increasing the "free" time of JA participants, which can be spent by participants on obtaining various types of benefits. The increase in "free" time itself can be considered as an enhancement of the overall benefits for JA participants. • Enhancing benefits when increasing the number of JA participants through deepening their specialization and division of labor. Growth in participant numbers usually significantly increases volumes of processed information and associated mechanism costs. Automation of mechanism functions can prevent growth of mechanism costs 18 when increasing the number of JA participants. Thus, conditions arise in the economy to involve more participants in JA and obtain additional benefits from this. • Since digitization increases volumes of information that can be collected and processed without substantial cost growth, JA benefits can grow as a result of expanding the choice area of possible JA content variants, as well as through more complete accounting of JA participants' capabilities and intentions. Additionally, improving sustainability of participants' benefits achievement under conditions of regular unpredictable changes means maximizing cumulative benefits over time. The efficiency of the mechanism enhancement The reduction in mechanism costs and enhancement of JA participants' benefits created by digitalization lead to increased efficiency of economic mechanisms. This, in turn, evidently creates conditions for improving the overall marginal productivity of JA participants. Enhanced mechanism efficiency exerts a systemic and comprehensive influence on all JA processes. In this case, unlike the results of Acemoglu's analysis (Acemoglu, 2025), productivity growth due to the use of IT/AI solutions can be expected across all types of jobs. These same factors may lead to a reduced need for managers in the economy. The digitalization of economic mechanisms has a different character of impact on JA than the automation of final product manufacturing processes, which often leads to job cuts and increased inequality (Acemoglu, 2025). Unlike the consequences of traditional automation, when most of the resulting benefits accumulated with firm owners and managers (Acemoglu, 2025), the digitalization of economic mechanisms and the associated increase in mechanism efficiency affects approximately equally all participants and all types of jobs, causing growth in workers' marginal productivity. Enhanced mechanism efficiency may be a way to neutralize negative economic consequences associated with the observed growth in uncertainty and intensity of unpredictable changes due to accelerated scientific and technological progress and other factors. The higher the intensity of unpredictable changes, the more frequently participants use mechanisms to adapt their JA parameters to new conditions. This leads to increased costs associated with mechanism usage, which can be compensated by automation of mechanism functions. Unpredictable changes may also create new opportunities for benefit enhancement, the effectiveness of utilizing which is higher the greater the efficiency of economic mechanisms. Adaptability enhancement The improvement in mechanisms' capabilities to support sustainable benefit acquisition in the flow of unpredictable changes as a result of digitalization signifies enhanced adaptive capacities of all economic actors—from individual JA participants to the country's economy as a whole. The consequence of this may be the smoothing of cost growth amplitude in the economy associated with "shock waves" of mass adaptation to changes, and an increase in the "degree" of average normal intensity of changes in the economy. Evolution of traditional economic mechanisms For the many traditional mechanisms currently used in the economy, the emergence of IT/AI solutions that can enhance their efficiency will cause an obvious process of gradual integration of these solutions into traditional mechanisms, which may lead to complete 19 mechanism reconstruction. For traditional mechanisms such as network structure, hierarchical organization, market, and common rules or institutions in the role of governing structures, processes of integrating new solutions can lead to substantial changes in traditional mechanism properties. Since the properties of the mechanism system operating in the economy are usually associated with a certain type of economic order, evolution of these mechanism properties due to their digitization can lead to substantial systemic changes in the economy and society. Mechanism cost reduction means reduction of corresponding transaction costs. This can lead to changes in transaction cost threshold values that, for given JA and conditions of its implementation, determine economic feasibility of using certain types of economic mechanisms (Coase, 1998; Williamson, 1975). Thus, mechanism digitization can create economic incentives for many types of JA regulated, for example, by market mechanisms, to transition to intra-firm regulation mechanisms. On the other hand, market mechanism properties can evolve, approaching properties of network structure and/or hierarchical organization. 4. Main research results Initial goal of this study is to supplement the analysis of AI influence on the economy, e.g., presented in (Acemoglu, 2025), by analyzing the impact of possible IT/AI digitization of economic mechanisms. Conducting such analysis required the development of a research methodology for studying the functioning of economic mechanisms, based on which it was possible to formulate an initial version of the concept of systemic digitalization of economic mechanisms. A certain portion of this concept, as it appears, can be formulated as a "social order" for the IT/AI industry. Below are descriptions of these results, which may be of independent interest. Research methodology Two approaches to describing economic mechanism functioning are most well-known, whose authors have been recognized with Nobel Prizes in Economics: • Mechanism design theory (Hurwicz, 1973; Maskin & Sjöström, 2002; Hurwicz & Reiter, 2006). This theory produces good results in determining optimal mechanism designs, but only for certain types of JA that are close to auctions, and whose participants have stable personal preferences regarding JA content. Analyzing the applicability boundaries of this theory, Ostrom notes that among the existing diversity of JA types, proper situations to use this theory occur quite rarely (Ostrom, 2005). • The IAD framework (Ostrom, 2005). The framework proposes a concept of universal building blocks and principles of institutional design for forming rules and institutions in the role of economic mechanisms. Since rules (together with skills and IT) are one type of constructive element for a large number of economic mechanisms, IAD presents only a partial description of mechanism operation and principles of their construction. This study to some extent complements and generalizes these two appraches. The proposed methodology, part of which is presented in Section 2 above, is based on the hypothesis that the operational content of a large number of economic mechanisms can be described by a set of six interconnected universal functions. The hypothesis regarding the existence of universal 20 functions of economic mechanisms does not contradict the observed diversity of economic mechanism types, since this diversity is explained by differences in the methods of practical implementation of universal functions. Based on the content of these universal functions, which are derived from institutional design principles of the IAD framework (Ostrom, 2005), a description of information processes occurring in economic mechanisms has been developed. The methodological approach, in which the universal functions of mechanisms are defined first and then information processes are derived from them, has two important qualities: a) the description of information processes based on these functions is universal and applicable to many economic mechanisms; b) the IT/AI implementation of these functions determines the efficiency of mechanisms, allowing for the comparison of solutions based on their impact on this efficiency. As is known, information processes associated with mechanism functions can be implemented in various ways. For example, the processes can occur through traditional "faceto-face" communication among JA participants, and/or using services of online platforms and social networks (Amazon, Facebook, Google, etc.), as well as computer algorithms for data analysis (AI, simulation modeling, etc.). Methods of practical implementation of these information processes differ in the magnitude of time savings and other cost savings for JA participants. This cost saving is achieved through automation of certain information-related actions. The magnitude of cost savings depends, among other factors, on the nature of JA and current conditions for its implementation. Thus, selecting methods for implementing information processes of economic mechanisms allows for reducing costs of executing universal functions and/or increasing the probability of obtaining greater benefits from JA regulated by the given mechanism. Developing this logic, for each obtained description of an information process associated with executing one of the six universal mechanism functions, its general possible influence on mechanism cost magnitudes and JA benefits is considered. Analysis of mechanism cost savings and/or JA benefit enhancement resulting from implementing certain IT/AI solutions allows for evaluating the possible contribution of these solutions to enhancing mechanism efficiency. Taking into account the nature of each information process's influence, IT/AI solutions are selected for automating JA participants' activities. The proposed solutions provide mechanism efficiency enhancement through various possibilities for reducing costs associated with mechanism operation, as well as utilizing mechanism capabilities to increase JA benefits. Concept of systemic mechanism digitization The methodology of this study enabled conducting some kind of systemic analysis of IT/AI solution possibilities for organizing mechanism information processes to enhance their efficiency. On the same basis, general requirements for currently absent IT/AI solutions were determined. These results are proposed to be considered as an initial version of the concept of systemic digitization of economic mechanisms, which is presented in Section 3 above. The criterion for selecting IT/AI solutions for this concept is their ability to ensure mechanism efficiency 21 enhancement. The systemic nature of this concept is ensured by considering a set of sequentially interconnected universal mechanism functions, in which information processes of preceding functions gradually create conditions for effective execution of subsequent ones. A certain effect is formed at each stage, and its overall magnitude depends on compatibility of results and connectedness of information processes at individual stages. The greatest effect is brought by digitizing information processes considering interconnections between mechanism functions. "Social order" The expected influence of mechanism digitization on the economy promises substantial positive changes at both microeconomic and macroeconomic levels. These expectations can create sufficient motivations for developing required IT/AI solutions. Based on the descriptions of required IT/AI solutions provided in Sections 3 above, the idea of forming a kind of "social order" for the IT/AI industry is proposed. Discussion of this idea in the scientific community, if it is supported, can intensify both the development of necessary solutions and bring closer the achievement of practical economic effect from enhancing economic mechanism efficiency through digitization of their information processes. One of the key IT/AI solutions for effective digitization that has not yet been developed is the implementation of agent-based simulation models based on online platforms similar to virtual worlds in massively multiplayer online games. In such virtual "world," JA participants are represented by their digital twins and can engage in intra-model interactions. Such a simulation model with intra-model interaction capabilities offers users tools for collective modeling to analyze and select scenarios of possible joint actions, including using algorithms to search for JA variants optimal for all participants in terms of benefit/cost ratios. Another missing key solution is the integration of AI with an agent-based simulation model of the type described above. This integration enables AI to interact with JA participants in the following roles: a) as a coordinating intermediary, assisting JA participants in aligning the parameters of their activities and facilitating decision-making regarding the adaptation of these parameters to ongoing or anticipated changes; b) as an arbitration assistant, helping to detect signs of violations of the agreed content of JA and identify potential violators; c) as a monitoring and analytical agent, overseeing the implementation of the agreed joint activity, analyzing and forecasting deviations of outcomes from expected ones, diagnosing their causes, and generating proposals for adjustments to the parameters of JA. These two key applications are proposed to be included in the initial content of a “social order” addressed to the IT/AI. The development of such applications would initiate the design and practical construction of an online platform offering users services for building economic mechanisms for a wide variety of JA types. 5. Conclusion This study is primarily conceptual and exploratory. Its aim to draw attention to a currently underexplored opportunity for the positive impact of IT/AI solutions on the economy— 22 namely, through the digitalization of economic mechanisms. As this study has shown, enhancing the efficiency of economic mechanisms via digitalization based on modern IT/AI solutions can have a profound and multifaceted effect on the functioning of all segments of the economic system. This article may also be viewed as a response to concerns voiced within the academic community, particularly those articulated by Acemoglu: “My assessment is that there are indeed much bigger gains to be had from generative AI, which is a promising technology, but these gains will remain elusive unless there is a fundamental reorientation of the industry, including perhaps a major change in the architecture of the most common generative AI models, such as the LLMs, in order to focus on reliable information that can increase the marginal productivity of different kinds of workers, rather than prioritizing the development of general human-like conversational tools” (Acemoglu, 2025, p. 45). The research outcomes of the study translate Acemoglu’s suggestions into a concrete concept of systemic digitalization of economic mechanisms and a specific “social order” addressed to the IT/AI industry. The resulting list of proposed solutions is expected to help increase the efficiency of economic mechanisms. One of the key anticipated outcomes is an increase in the marginal productivity of almost all workers, as emphasized by Acemoglu. It also can produce both microeconomic and macroeconomic improvements. The content of the systemic digitalization concept and the proposed "social order" is based on the author's current understanding of the structure and operating principles of economic mechanisms, and also relies on contemporary achievements in the IT/AI field. However, questions of enhancing economic mechanism efficiency, particularly through IT/AI solutions, have a fundamental scientific character. The fundamental nature of these questions is conferred by the special role of economic mechanism characteristics and, in particular, their efficiency for harmonious socio-economic development. The scientific task here is to search for both existing and possible IT/AI solutions that allow for optimal enhancement of mechanism efficiency. The research space is created by continuous improvement of existing approaches and technologies, as well as the emergence of fundamentally new solutions that can enhance economic mechanism efficiency. Additionally, the development of scientific understanding regarding economic mechanism operating principles and methods for enhancing their efficiency is possible. Acknowledgments References Acemoglu, D. (2025). The simple macroeconomics of AI. Economic Policy, 40(121), 13-58 (cited text fragments and page numbers correspond the article in «NBER working papers» online archivehttps://www.nber.org/system/files/working_papers/w32487/w32487.pdf) Agrawal, Ajay, Joshua S Gans, and Avi Goldfarb. (2023) “Artificial Intelligence Adoption and System-Wide Change,” Journal of Economics & Management Strategy, 2023, pp. 1–11. 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