What is Machine Economy?

In depth

The machine economy was the conceptual framework used between 2018-2021 to describe IoT devices and systems that could autonomously transact. It predates the agentic economy by focusing on mechanical transactions rather than intelligent agency. This terminology has largely been superseded by the agentic economy, which better captures AI's decision-making capabilities.

Why it matters

• Pre-AI agent period
• IoT transactions
• Device-centric model
• 2018-2021 era

Related terms

• Agentic Economy — An economy where AI agents participate as economic actors, not just tools.
• Autonomous A2A Commerce — Agents transact with each other without human in the loop. Category C.
• Agent-as-Workforce — The agent replaces a human worker inside an enterprise. Category B.