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Boardwalk Empire: How Generative AI is Revolutionizing Economic Paradigms

The relentless pursuit of technological advancements has ushered in a new era where artificial intelligence (AI) is not only a powerful tool but also a critical economic driver. At the forefront of this transformation is Generative AI, which is catalyzing a paradigm shift across industries. Deep generative models, an integration of generative and deep learning techniques, excel in creating new data beyond analyzing …

Licence
OPEN CC-BY-4.0
Authors
Subramanyam Sahoo, Kamlesh Dutta
Published
2024-10-19 · arXiv
Language
en
Length
14263 words
Type
narrative text

Cites 34 works

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6 Effects of generative AI

  • In dealing with complex tasks, generative AI models have shown promising results. While these developments are still in their early stages, AutoGPT, a significant Generative AI model, has already received more GitHub stars than PyTorch Felten et al. (2023).
  • Generative AI is breaking new ground in music and video, with one AI-generated Drake song gaining over 15 million views.
  • A video of Harry Potter characters dressed in Balenciaga generated by AI has gone viral on YouTube and TikTok.
  • Nvidia’s market cap increased by $ 200 billion to $ 1 trillion on May 30, 2023. This was the highest single-day increase in market capitalization in the history of any corporation. The rise in Nvidia’s stock price was fueled by several factors, including strong demand for its graphics processing units (GPUs) from the gaming and data center markets, which is being fueled by the boom in Generative AI Chen et al. (2023).
  • Chegg shares dropped by more than 40% following the emergence of ChatGPT.
  • The Impact of the ChatGPT Ban in Italy: - Our investigation of the ChatGPT prohibition in Italy on March 31, 2023, suggests a market-wide unfavorable reaction. The announcement of the ban reduced the shareholder value of the entire Italian equities market by 1.3%, 1.8%, and 1.4%, respectively, within a 3-day, 5-day, and 7-day window, compared to a matched sample of European enterprises. When comparing the entire ban period to the three months preceding the ban, total shareholder value was reduced by approximately 2.5% based on market capitalization before the suspensionBertomeu et al. (2023).