Abstract
This paper explores whether modern economies rely more on social networks or pure price-based markets, and how artificial intelligence affects the economic value of human ties. Classical models view markets as anonymous and driven solely by prices, but real-world transactions depend heavily on trust, reputation, and social capital. As companies rapidly adopt AI to handle routine tasks, many fear human connections will become obsolete. However, because competing firms use similar AI tools and datasets, algorithms risk creating standardized results that erase competitive advantages.
In this environment, human ties become even more valuable. Unlike algorithms, humans offer cognitive diversity, tacit knowledge, and long-term trust that help navigate unexpected crises and protect informal business agreements. To balance technology with human judgment, this paper proposes a hybrid governance model: using AI for data sorting and efficiency, while reserving major strategic decisions for human networks. Ultimately, rather than replacing human connections, the rise of AI makes trust and personal relationships even more essential to economic success.
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