Generative Artificial Intelligence (GAI) – Foundations, Use Cases and Economic Potential

  • A key technology driving the digital transformation of the economy is artificial intelligence (AI). It has gained a high degree of public attention with the initial release of the chatbot ChatGPT, which demonstrates the potential of generative AI (GAI) as a relatively new segment within AI. It is widely expected that GAI will shape the future of many industries and society in the coming years. This article provides a brief overview of the foundations of generative AI (“GAI”) including machine learning and what distinguishes it from other fields of AI. Furthermore, we look at important players in this emerging market, possible use cases and the expected economic potential as of today. It is apparent that, once again, a few US-based Big Tech firms are about to dominate this emerging technology and that the European tech sector is falling further behind. Finally, we conclude that the recently adopted Digital Markets Act (DMA) and the Digital Service Act (DSA) as well as the upcoming AI Act should be reviewed to ensure that the regulatory framework of European digital markets keeps up with the accelerated development of AI.

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Author:Volker BrühlORCiDGND
Series (Serial Number):CFS working paper series (No. 713)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Date of Publication (online):2023/07/25
Date of first Publication:2023/07/25
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2023/08/01
Page Number:10
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
JEL-Classification:O Economic Development, Technological Change, and Growth / O3 Technological Change; Research and Development / O30 General
O Economic Development, Technological Change, and Growth / O4 Economic Growth and Aggregate Productivity / O40 General
Licence (German):License LogoDeutsches Urheberrecht