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Abstract In recent years, the Artificial Intelligence (AI) emergence had an important impact on the global economy, especially in advanced countries. Therefore, this study assessed the AI effect on economic growth in 30 European countries between 2000 and 2021 using the symmetric (PMG-ARDL) model and the asymmetric (PMG-NARDL) model. The results of this study lead us to conclude that the use of AI in the ARDL model has a positive impact on economic growth. Specifically, an increase in the AI variable leads to a 0.217% increase in economic growth in the long run. In the case of the NARDL model, positive shocks to the positive AI variable led to an increase in economic growth, but negative shocks reduce it. The use of this technology can stimulate economic growth by increasing efficiency, fostering economies of scale, improving the quality of products and services and creating better working conditions. However, it can also have negative effects, such as job displacement, training and adaptation costs and the exacerbation of economic and social inequalities. Hence, policymakers are urged to examine AI role in driving economic growth and fostering inclusive development, particularly in sectors where it can facilitate the creation of AI-based solutions to tackle social and environmental challenges. JEL Classification: C23; O31; O11.
Kalai et al. (Wed,) studied this question.