A Critical Analysis of AI’s Sway over National Accounts, using the Economic Circular 3D-model: A Case of Assessing Afghanistan’s National Account (2002-2018)

Mohammad Ismail Fazly

Volume 7 Issue 1 | Dec 2025

DOI: 10.31841/KJET.2025.43

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Abstract

This paper indicates the impact of Artificial intelligence on the production processes and employment opportunities. Artificial intelligence is one of the most challenging phenomena to labour in many modern societies, but its sway over production and employment opportunities is crucial. This research paper is based on a theoretical framework, the Economic Circular 3D-Model (EC3D-Model), and an inductive research method. The triangulation method is used for data collection, and the data have been analysed with the help of a theoretical framework. As a consequence, the study found that in real sectors of the economy concerning the production process, there are twenty-seven (27) possible production procedures. However, in the case of AI impact, fortunately, only two, Y1 and Y10, can have an adverse effect on employment opportunities. In addition, Y1 and Y10 are two conditions that lead to labour surplus, with Y1's capital and output level remaining constant and labour decreasing. Similarly, with Y10's level of output increasing, the capital remains constant, and labour decreases. Furthermore, the study found that the technological impact on the level of output in Afghanistan over the last two decades has increased from 17.32% to 56.9%. This impact is, in fact, labour's vigour, which is reflected in the form of technological advancements, such as AI, in the economy.
Keywords: Artificial Intelligence, Capital, Labor, National Accounts, Afghanistan, Economic Circular 3D-model