AI-Enhanced Decision-Making Capabilities in a Noncooperative Social Welfare Optimization Game

Daniel Tapia, Sean Colbert-Kelly, David Luckey, Ismael Arciniegas Rueda, David DeSmet, Thomas Goode

Published Jan 21, 2025

Efforts to apply artificial intelligence (AI) in critical infrastructure systems to enhance reliability and efficiency are robust and ongoing. To assess AI's impact on an electrical grid, a game theory model is used to examine increasing use of AI and its impacts on social welfare. The authors find AI proliferation could undermine efficiency if action spaces are unconstrained, AI is used by enough players, and clearly inefficient decisions can occur.

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Tapia, Daniel, Sean Colbert-Kelly, David Luckey, Ismael Arciniegas Rueda, David DeSmet, and Thomas Goode, AI-Enhanced Decision-Making Capabilities in a Noncooperative Social Welfare Optimization Game. Santa Monica, CA: RAND Corporation, 2025. https://www.rand.org/pubs/working_papers/WRA3488-1.html.
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