A policy simulation experiment on innovations and OpenAI-driven labour force-growth Nexus: OpenAI capabilities through patent and IT exports

Authors: Adedoyin, F.F., Ogunbiyi, V.O., Adebiyi, A. and Oluokun, E.

Pages: 102-132

DOI: 10.4018/979-8-3693-1198-1.ch006

Abstract:

The hypothesis that advancement in Artificial intelligence can enhance the quality of labour and consequently its contribution to multifactor productivity and economic growth has continued to attract attention in recent times. However, not much empirical evidence is available in the literature to support this hypothesis considering current economic realities. This study investigates the impact of AI-driven labor on economic growth in Switzerland. Data from 1960-2022 is used to analyze the relationship between labor and growth. Dynamic ARDL simulation is employed for policy simulation and prediction. The findings suggest that the short-term implementation of OpenAI may cause economic shocks, but a strategic approach can lead to long-term benefits. The study emphasizes the importance of investing in human capital through education and training programs. It also recommends a proactive and balanced approach to harness the potential benefits of AI while addressing its challenges.

Source: Scopus