Artificial intelligence, firms and consumer behavior: A survey

Abstract

The current advances in Artificial Intelligence (AI) are likely to have profound economic implications and bring about new trade-offs, thereby posing new challenges from a policymaking point of view. What is the impact of these technologies on the labor market and firms? Will algorithms reduce consumers' biases or will they rather originate new ones? How competition will be affected by AI-powered agents? This study is a first attempt to survey the growing literature on the multi-faceted economic effects of the recent technological advances in AI that involve machine learning applications. We first review research on the implications of AI on firms, focusing on its impact on labor market, productivity, skill composition and innovation. Then we examine how AI contributes to shaping consumer behavior and market competition. We conclude by discussing how public policies can deal with the radical changes that AI is already producing and is going to generate in the future for firms and consumers.

Artificial Intelligence and Firm-Level Productivity

“…This effect remains robust after controlling for several technological features of the firm. The evidence presented in this paper therefore confirms what has previously been hypothesized in the literature, i.e., AI use contributes positively to firms' productivity (Abrardi et al 2021).…”

“…3 Stiroh (2005) and Draca et al (2006) provide surveys of studies considering IT technologies in firm's production functions. In a recent survey, Abrardi et al (2021) review studies that consider AI as a new input of production.…”

Analisis strategi kompetitif PT. Bank Central Asia

“…Produk atau jasa dapat dipersonalisasi dengan lebih mudah di jaman modern ini karena kemajuan teknologi artificial intelligence (AI) dan machine learning (ML) yang dapat menganalisa dan memprediksi perilaku konsumen, sehingga dapat memanipulasi customer journey konsumen (Kietzmann et al, 2018). Teknologi AI dan machine learning mampu meningkatkan performa dan produktivitas perusahaan (Abrardi et al, 2022). Perilaku konsumen, seperti riwayat pencarian, kecenderungan membuka suatu aplikasi atau website pada waktu tertentu, lama waktu konsumen menggunakan aplikasi atau website, riwayat pembelian produk, dan data-data penting lainnya dapat dianalisa sehingga sistem informasi dapat memprediksi dan menyarankan produk yang mungkin dibutuhkan atau diinginkan konsumen.…”

The microeconomics of data – a survey

“…This choice excludes most of the literature regarding artificial intelligence and machine learning, as that strand of literature often focuses on data-enabled technologies rather than on how different quantities (or qualities) of data affect such technologies. The reader can refer to Agrawal et al, (2019) for a broad analysis of artificial intelligence and economics and Abrardi et al, (2021) for a comprehensive survey on artificial intelligence and machine learning.…”