The Political Economy of Artificial Intelligence: Algorithmic Enclosure, Labor Subordination, and the New Architecture of Global Capitalism

Abstract

The rapid deployment of Artificial Intelligence (AI) and machine learning architectures over the past decade represents a fundamental structural shift in the global political economy. This comprehensive treatise investigates the political economy of AI, arguing that these technologies do not merely represent a neutral evolution in productive forces, but function as active mechanisms for the enclosure of the digital commons, the deepening of digital rentiership, and the radical subordination of global labor. By synthesizing Marxist labor process theory with contemporary analyses of cognitive capitalism, this paper systematically deconstructs the foundational business models of transnational tech monopolies. We trace the historical evolution of algorithmic management from industrial Taylorism to modern "digital Taylorism," documenting how proprietary algorithms deskill labor, enforce real-time surveillance, and fragment traditional employment relations across logistics, gig work, and creative industries. Furthermore, the paper examines the geopolitical dimensions of the AI arms race, specifically the US-China rivalry over semiconductor supply chains and computing infrastructure, characterizing it as a new era of techno-nationalism. Through a critical evaluation of recent regulatory attempts, including the EU AI Act, we demonstrate how the state frequently functions to institutionalize corporate monopolies under the guise of safety and risk mitigation. The study concludes by exploring emerging forms of digital labor resistance and outlining a radical policy framework—including the socialization of foundational computing grids, the implementation of data dividends, and the establishment of platform cooperatives—to democratize the digital economy and prevent the total subsumption of human cognition by capital.