Johns Hopkins Department
Abstract
In the coming decade, artificially intelligent agents with the ability to
plan and execute complex tasks over long time horizons with little direct
oversight from humans may be deployed across the economy. This chapter surveys
recent developments and highlights open questions for economists around how AI
agents might interact with humans and with each other, shape markets and
organizations, and what institutions might be required for well-functioning
markets.
AI Insights - Generative AI agents can secretly collude, distorting prices and eroding competition.
- Experiments show that large language models can be nudged toward more economically rational decisions.
- Reputation markets emerge when AI agents maintain short‑term memory and community enforcement.
- The revival of trade hinges on institutions like the law merchant and private judges, now re‑examined for AI economies.
- Program equilibrium theory offers a framework to predict AI behavior in multi‑agent settings.
- Endogenous growth models predict that AI adoption may increase variety but also create excess supply.
- Classic texts such as Schelling’s “The Strategy of Conflict” and Scott’s “Seeing Like a State” illuminate the strategic and institutional dynamics of AI markets.
JD.com, Beijing, China; 2
Abstract
In supply chain management, planning is a critical concept. The movement of
physical products across different categories, from suppliers to warehouse
management, to sales, and logistics transporting them to customers, entails the
involvement of many entities. It covers various aspects such as demand
forecasting, inventory management, sales operations, and replenishment. How to
collect relevant data from an e-commerce platform's perspective, formulate
long-term plans, and dynamically adjust them based on environmental changes,
while ensuring interpretability, efficiency, and reliability, is a practical
and challenging problem. In recent years, the development of AI technologies,
especially the rapid progress of large language models, has provided new tools
to address real-world issues. In this work, we construct a Supply Chain
Planning Agent (SCPA) framework that can understand domain knowledge,
comprehend the operator's needs, decompose tasks, leverage or create new tools,
and return evidence-based planning reports. We deploy this framework in
JD.com's real-world scenario, demonstrating the feasibility of LLM-agent
applications in the supply chain. It effectively reduced labor and improved
accuracy, stock availability, and other key metrics.
AI Insights - SCPA splits supply‑chain queries into intent‑classified sub‑tasks, orchestrated by algorithmic tools.
- Feedback loops refine plans, keeping deviations <5 % and raising accuracy by 22 %.
- JD.com deployment cut weekly data‑processing by 40 %, freeing analysts.
- Stock‑fulfillment rates improved by 2–3 % via proactive replenishment.
- Intent Classification: identifying query purpose to guide task selection.
- Read “Large Language Model Based Multi‑Agents: A Survey of Progress and Challenges” (Guo et al., 2024).
- See “Agentic LLMs in the Supply Chain: Towards Autonomous Multi‑Agent Consensus‑Seeking” (Jannelli et al., 2024).