Economics of AI

Artificial intelligence, real decisions

AI is changing how markets work, businesses compete and regulators respond. We help clients understand the economics of AI, so they can make the right decisions.

AI is moving fast

It’s creating new markets, reshaping existing ones and raising fresh questions for policymakers, regulators and courts.

For businesses, AI offers efficiencies and new ways to serve customers. But it also brings strategic uncertainty, potential liability and reputational risk.

We help companies, policymakers and regulators navigate the new AI landscape. Our economic, data science and sector expertise helps clients evaluate AI projects, respond to regulation, resolve disputes and anticipate how AI will transform markets.

Our AI expertise

Understanding AI: Explaining how AI systems work and what this means for liability, competition and regulation.

Regulation: Shaping and responding to AI-related frameworks, across sectors.

Public policy: Advising governments and international bodies on the economic and social implications of AI.

Data science: Applying AI in practice, and bridging the gap between technical specialists and decision-makers.

AI in litigation

AI is causing new disputes. Who is liable when a system fails? How should damages be assessed when AI makes a decision? What happens if a firm misrepresents its use of AI?

We provide clients and their legal teams with clear economic evidence, unpacking how AI works and translating technical complexity into arguments that stand up in court or arbitration.

Competition & the AI market

Competition authorities are scrutinising AI markets. Market power may concentrate in compute, models or data, and issues like self-preferencing, vertical foreclosure and data access are becoming more pressing.

Our competition economists bring deep experience in counterfactual analysis and damages assessment. We help authorities, businesses and courts understand how AI affects markets – and what that means for competition policy and enforcement.

Policy & regulation

For regulators, AI poses a challenge: how to encourage innovation while protecting consumers and markets. Policymakers face similar questions as they grapple with liability frameworks, assurance mechanisms and the trade-offs between innovation and oversight.

We help policymakers, regulators and companies assess which choices to make, drawing on experience from digital, telecoms, energy and financial services. Our analysis helps decision-makers strike the balance between opportunity and risk.

AI strategy & implementation

Adopting AI is not just a technical decision – it’s an economic one. Where are the biggest opportunities? What are the costs, benefits and risks? When will AI add value, and when might it not?

We help clients answer these questions with robust economic frameworks. From cost–benefit analysis to evaluating outcomes, our evidence helps businesses make better decisions – and our AI assurance work helps them demonstrate accountability and manage stakeholder expectations.