Artificial Intelligence and Industrial Policy

Abstract

The study concludes by emphasizing the future of industrial policies in the context of digitalization, sustainability, and innovation. It presents policy recommendations to support AI-based production, workforce adaptation, ethical governance, and global regulatory alignment, ensuring sustainable and competitive industrial transformation. The integration of artificial intelligence (AI) into industrial policy is transforming economic growth, governance structures, and workforce dynamics. AI-driven automation and digital transformation are redefining industrial production, requiring policymakers to develop adaptive regulations that enhance efficiency, promote sustainability, and ensure inclusive economic development. This study explores AI’s role in industrial policies, focusing on regulatory frameworks, economic implications, and labor market transformations. It examines AI applications in industrial strategies across different countries, highlighting key regulatory measures adopted by the European Union, the United States, and China. Additionally, it analyzes Turkey’s AI-driven industrial policies, emphasizing national strategies, regulatory challenges, and efforts to align AI with industrial transformation. The findings suggest that AI-compatible industrial policies should prioritize ethical integration, workforce adaptation, and public-private collaboration to foster sustainable development. Furthermore, the study underscores the importance of balancing innovation with regulatory oversight to mitigate socio-economic risks. By implementing well-structured AI-driven policies, countries can enhance global competitiveness, stimulate economic growth, and drive technological advancements while addressing ethical and regulatory concerns. The study concludes with policy recommendations aimed at fostering AI innovation while ensuring an inclusive and sustainable industrial future.