Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China

Research Article

Quantifying the Economic Benefits of Artificial Intelligence Technology

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  • @INPROCEEDINGS{10.4108/eai.9-12-2022.2327579,
        author={Fu  Xian},
        title={Quantifying the Economic Benefits of Artificial Intelligence Technology},
        proceedings={Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China},
        publisher={EAI},
        proceedings_a={MSIEID},
        year={2023},
        month={3},
        keywords={computers; artificial intelligence technology; economic benefits; direct effect; indirect effect},
        doi={10.4108/eai.9-12-2022.2327579}
    }
    
  • Fu Xian
    Year: 2023
    Quantifying the Economic Benefits of Artificial Intelligence Technology
    MSIEID
    EAI
    DOI: 10.4108/eai.9-12-2022.2327579
Fu Xian1,*
  • 1: Sichuan University Jinjiang College
*Contact email: xianfu800@163.com

Abstract

Artificial intelligence technology has been hailed as the driving force behind the fourth industrial revolution, and its widespread application has given the economy a boost. However, in the AI era, more research into the sources of innovation and economic growth models is required, as these are critical to addressing long-term economic growth and accelerating the transformation of economic growth models. This study uses the improved Cobb-Douglas production function (C—D function) model to quantify the economic benefits of AI technology, and empirically demonstrates using Chinese panel data from 2010 to 2019. The findings show that AI can directly drive economic growth, while AI indirectly promotes economic growth by increasing the level of technological innovation and human capital in the market. Finally, policy proposals for AI development in China are suggested based on the research findings.