Artificial intelligence (AI) has become one of the paramount driving forces, structurally influencing contemporary economy. Its notable potential is reshaping investment landscapes and economic growth in leading countries worldwide, and boosting their economic expansion. AI significantly contributes to the improvement of business efficiency, the decision-making process, and the creation of high quality and personalised products and services, thus contributing to consumer demand uplift and generating higher income. Global competition to obtain AI-driven benefits is strong, and leading countries dominate this competitive battle. Although all countries experience benefits from AI, economies at the forefront of AI investment, including the United States, China, and Europe, are leveraging AI to drive advancements in key industries. As an engine of economic prosperity and societal wellbeing, the economic impact of investments in AI is discussed in the paper, with a particular focus on generative AI, as well as AI’s impact on productivity, economic growth, innovations, workforce, labour market, etc. Given the certain concerns related to the potential disruptive effects on the economy and society reflected in the creation of monopoly and super firms, the growing gap in countries’ development, labour market volatility, etc., carefully designed public policy would encourage advantages in AI implementation and diffusion, and keep negative effects under control. The paper aims to assess and discuss investments in AI due to its unique capacity to accelerate innovations and productivity, and its multidimensional implications on economic performance, along with the accompanying potential challenges and risks.
Stanojević et al. (Mon,) studied this question.