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THE ASHBY INSTITUTE

RESEARCH PROGRAMS

AI Economics.
Four applied programs.

AI Economics is the Institute's core field. The four programs below apply it to compute, governance, systems theory, and society. Ashby's Law supplies the shared discipline: institutions, like markets, cannot be understood apart from the systems and constraints that shape them.

CELLULAR AUTOMATON · EMERGENT ORDER
FLAGSHIP FIELDvalue = capability × scarce complements

AI Economics

TAI studies AI as an economic system: the cost curves, bottlenecks, market structures, rents, and adjustment paths through which capability becomes output. We trace the scarce complements — energy, compute, data, talent, infrastructure, and legitimacy — that determine who captures value and when.

Industrial OrganisationPolitical EconomyProductivity

PROGRAM OUTPUTS

01AI Economics Working Papers
02AI Cost Curve & Scarcity Briefs
03Market Structure Analyses
04Quarterly AI Economy Notes
CELLULAR AUTOMATON · EMERGENT ORDER
LORENZ ATTRACTOR · SCENARIO SPACE
APPLIED PROGRAM IV(R) ≥ V(D)

Compute Futures

Forward-looking AI economics. We model how shifts in compute, energy, capital expenditure, and model efficiency reshape the industrial organisation of AI, labor demand, and the distribution of productive capacity across geographies and institutions.

ForecastingInfrastructureLabor Markets

PROGRAM OUTPUTS

01Compute 2030 Annual Report
02Scenario Modeling Working Papers
03Compute Transition Indicators
04Quarterly Structural Briefings
APPLIED PROGRAM IIR ⊇ model(S)

Compute Governance

The institutional economics of AI. We examine how compute access policy, export controls, liability, and international coordination shape incentives, investment, market concentration, and the public capacity to govern AI systems.

PolicyInstitutional EconomicsInternational Law

PROGRAM OUTPUTS

01Compute Governance Annual
02Policy Briefs
03Treaty Framework Analysis
04Regulatory Design Templates
REGULATORY NETWORK · FEEDBACK DYNAMICS
REACTION-DIFFUSION · TURING PATTERNS
APPLIED PROGRAM III∀S ∃R: R ≡ model(S)

The Good Regulator Project

The systems theory beneath AI economics. Ashby's Law and the Good Regulator Theorem explain what institutions must model before they can govern a technological economy changing faster than their instruments, data, and incentives.

Systems TheoryControl TheoryInstitutional Design

PROGRAM OUTPUTS

01GRT Lecture Series
02Cross-Domain Working Papers
03Alignment Research Notes
04Mathematical Foundations
APPLIED PROGRAM IVV(equity) ≥ V(harm)

Compute & Society

The distributional economics of AI. We study how cheaper intelligence changes labor, bargaining power, access to opportunity, and public capacity — and which institutions can broaden the gains while absorbing the adjustment.

LaborPolitical EconomyCivil Society

PROGRAM OUTPUTS

01Compute Equity Index
02Distributional Analysis Reports
03Civil Society Briefings
04Policy Recommendations
BOIDS FLOCKING · DISTRIBUTED CONTROL

CROSS-DOMAIN APPLICATIONS

One framework. The AI economy in full.

AI Alignment

V(AI) ≫ V(H)

Superintelligent systems exceed human regulatory variety; the alignment problem is a variety-matching failure.

Cybersecurity

V(attacker) > V(defender)

Persistent insecurity arises when attackers hold more variety than defenders. Defense requires modeling the full attack surface.

Autonomous Systems

V(env) ≤ V(controller)

Autonomous vehicles, drones, and robotic systems fail when environmental variety exceeds controller model fidelity.

Critical Infrastructure

V(grid) ≤ V(operator)

Power grid failures and supply chain collapse follow from insufficient operator variety relative to system complexity.

Financial Systems

V(market) > V(regulator)

Systemic financial risk accumulates when market complexity exceeds regulatory model capacity (2008 as a GRT failure).

Healthcare Systems

V(pathogen) > V(response)

Pandemic response failures are variety failures: public health systems that cannot model novel pathogens cannot control them.

Democratic Governance

V(polity) > V(institution)

Democratic institutions that cannot model the full variety of their polity lose legitimacy and effectiveness.

Climate & Earth Systems

V(climate) > V(policy)

Climate governance fails when policy instruments lack the variety to absorb the complexity of Earth system feedbacks.

FEATURED PUBLICATION · JUNE 2026

Compute 2030

TAI's inaugural annual scenario report. Four structural scenarios for the AI economy through 2030, tracing how compute, energy, capital, market structure, and governance can evolve together — or fail to.

READ THE FULL REPORT →

FOUR SCENARIOS

I

Concentrated Dominance

One or two actors control the majority of global compute capacity.

II

Multilateral Fragmentation

Compute infrastructure fractures along geopolitical fault lines.

III

Governed Transition

International frameworks successfully coordinate compute governance.

IV

Diffuse Proliferation

Compute capacity distributes broadly, outpacing governance capacity.