Global adoption of generative AI: What matters most?

Journal of Economy and Technology Pub Date : 2024-10-28 DOI:10.1016/j.ject.2024.10.002

Hassnian Ali , Atta ul Mustafa , Ahmet Faruk Aysan

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Abstract

This study investigates the determinants of generative AI adoption across 136 countries, leveraging cross-sectional data from 2023 and employing a negative binomial regression model to address data overdispersion. Generative AI is a transformative technology that enhances operational efficiency, drives innovation, and creates economic value across sectors. Key findings reveal that IT infrastructure, R&D investments, and company investment in emerging technologies significantly foster generative AI adoption, while misaligned government policies may hinder it. The analysis identifies crucial determinants, including technological infrastructure, economic stability, regulatory environments, and workforce readiness, as pivotal to adoption rates. The study provides actionable insights for policymakers, industry leaders, and researchers, advocating for tailored policies, strategic investment in high-speed internet and cloud services, and refining government incentives to align with AI sector needs. This research uniquely contributes by offering a comprehensive, cross-country perspective on factors influencing generative AI adoption.

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Journal of Economy and Technology

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