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** This year’s Nobel Prize in economics reveals crucial insights about AI risk and innovation. The laureates’ research shows technological progress inevitably creates winners and losers, offering vital lessons for navigating AI’s societal impacts. Understanding these dynamics is key to managing AI’s disruptive potential. **CONTENT:**

This year’s Nobel Prize in economics offers profound insights about AI risk and technological innovation that every policymaker should understand. As someone working in AI policy, I frequently encounter existential fears about artificial intelligence, but the real danger lies in society’s inability to adapt to rapid technological change. The 2025 economics laureates—Joel Mokyr, Philippe Aghion, and Peter Howitt—provide the framework for understanding why innovation creates both prosperity and conflict, with direct applications to today’s AI debates. Their collective work demonstrates that managing technological transition, not preventing progress, represents our greatest challenge.