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on Payment Systems and Financial Technology |
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Issue of 2024‒05‒06
twenty-two papers chosen by |
| By: | Fumiko Hayashi; Aditi Routh |
| Abstract: | Cryptocurrency owners without sufficient financial literacy and risk tolerance may be financially vulnerable, as the cryptocurrency market is highly volatile and lacks consumer protections. Our study divides cryptocurrency owners into three groups based on their purpose for holding cryptocurrencies—for investment only (investors), for transactions only (transactors), and for a mix of investment and transactions (mix users)—and examines how each group correlates with financial literacy and risk tolerance compared to consumers who do not own cryptocurrencies (nonowners). Using the 2022 Survey of Household Economics and Decisionmaking, we find that investors and mix users are significantly or moderately more financially literate and risk tolerant than nonowners, but transactors are less financially literate and slightly more risk tolerant than nonowners. We also find that the three groups of cryptocurrency owners vary by demographic and financial characteristics. Our findings highlight that transactors could be particularly financially vulnerable in the absence of consumer protections in the cryptocurrency market. |
| Keywords: | cryptocurrency; financial literacy; risk |
| JEL: | D14 D91 E42 |
| Date: | 2024–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedkrw:98055&r=pay |
| By: | Nocciola, Luca; Zamora-Pérez, Alejandro |
| Abstract: | We shed light on the demand for a central bank digital currency (CBDC) as a means of payment, based on survey payment data. We provide a quantitative framework to assess transactional demand for CBDC at the point of sale, accommodating a wide range of design choices. We develop a structural model of payment means adoption and usage and estimate CBDC demand based on individuals’ preferences for payment method attributes. We disentangle the friction potentially associated to CBDC adoption, assessing two of its potential drivers: information frictions and gradual diffusion of digital payment methods. We find that modelling adoption is key to understanding CBDC demand. Finally, we show that optimal CBDC design, information campaigns, and network effects can substantially boost demand. JEL Classification: E41, E42, E47 |
| Keywords: | CBDC, money demand, payments, Random utility, structural model |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20242926&r=pay |
| By: | Matthew Liu; Nolan Ly; Kurtis Orr; Amber Seira; Zach Vida; Cy Watsky; Lawrence Wu |
| Abstract: | With the proliferation of programmable blockchains with smart contract capabilities, new blockchain technology use cases have emerged that involve the tokenization of conventional financial assets and related smart contract-based financial services. While early blockchains like Bitcoin introduced native cryptocurrencies as new asset classes, in recent years, market participants have noted the potential for blockchain and distributed ledger technologies (DLT) to be used to trade tokenized versions of bonds, money funds, and commodities, among other assets (GFMA, 2023, p. 6). |
| Date: | 2024–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2024-04-03&r=pay |
| By: | Srichander Ramaswamy (The South East Asian Central Banks (SEACEN) Research and Training Centre) |
| Abstract: | The view that cryptocurrencies can be a substitute for fiat currencies in an interconnected and digitised world appears to be gaining some traction. Such views are reinforced by the high fee banks charge on cross-border money transfers and for certain other financial services. The belief that cryptocurrencies will define the future of money is entrenched among millennials, and this belief has been driving up the demand for cryptocurrencies. Stablecoins in this ecosystem has taken on the role of the unit of account for crypto assets and is instrumental in providing liquidity as well as in facilitating trading of crypto assets. To play this role, stablecoins are being extensively used as collateral in crypto transactions with trading platforms holding such collateral in omnibus accounts. The global regulatory community is taking note of this and has expressed concerns that as the market for stablecoins and cryptocurrencies grow, potential risks to the broader financial system from runs on stablecoins can be damaging. This paper reviews these developments and provides some suggestions for policy drawing on the regulatory debates and initiatives from standard setters to address the risks identified. |
| Keywords: | Central banks, collateral, cryptocurrencies, financial stability, regulation, stablecoins |
| JEL: | E42 E58 G21 G23 G28 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:sea:wpaper:wp54&r=pay |
| By: | Tuuli Tähtinen |
| Abstract: | This paper investigates whether social media access is associated with increased probability or intensity of ethnic conflict in Myanmar. In this context most people use mobile phones, and particularly the Facebook app, to access the internet. To distinguish the effects of social media from those of the broader internet, I exploit geographic variation in mobile phone coverage as a proxy for Facebook availability. Despite evidence of a hate-campaign utilizing Facebook to reach wide audiences, I do not find that social media access is associated with increased probability or intensity of conflict. The only exception to the null result is variation related to the Rohingya crisis: in this regional setting suggestive evidence points to Facebook availability being associated with slightly higher probability of conflict. |
| Keywords: | internet, social media, conflict, propaganda, Myanmar, Rohingya |
| JEL: | D74 O33 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ifowps:_408&r=pay |
| By: | Caccia, Enea; Tapking, Jens; Vlassopoulos, Thomas |
| Abstract: | This paper discusses the impact that a retail central bank digital currency (CBDC) could have on the implementation of monetary policy. Monetary policy implementation could be affected if the introduction of the retail CBDC changes the volume of commercial bank deposits held by customers, which would, in turn, affect central bank reserves. While it is often assumed that customer deposits would decrease if a CBDC was introduced, we provide arguments why this is by no means clear cut and deposits could even increase. If bank deposits do decrease, banks would need to draw on, and therefore reduce, their central bank reserve holdings. Moreover, uncertainty as to the timing and extent of any conversions of deposits into CBDC might prompt banks to scale up their demand for central bank reserves in order to hold larger precautionary buffers. Consequently, central banks might need to adjust their reserve supply and other features of their monetary policy implementation, depending, for example, on whether they use a floor or a corridor system for monetary policy implementation. In the specific case of the digital euro, the features already envisaged for its design would make it possible to minimise the risk of negative consequences for monetary policy implementation. JEL Classification: E41, E42, E43, E52, E58, G21 |
| Keywords: | central bank digital currency, central bank reserves, monetary policy implementation |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2024345&r=pay |
| By: | Gschnaidtner, Christoph; Dehghan, Robert; Hottenrott, Hanna; Schwierzy, Julian |
| Abstract: | A widespread approach to measuring the innovative capacity of companies, sectors, and regions is the analysis of patents and trademarks or the use of surveys. In emerging digital technologies this approach may, however, not be sufficient for mapping technology diffusion. This applies to blockchain technology which is in essence, a decentralized and distributed database (management system) that is increasingly used well beyond its originally intended purpose as the underlying infrastructure for a peer-to-peer payment system. In this article, we use an alternative method based on web-analysis and deep learning techniques that allow us to identify companies that use blockchain technology to determine its diffusion. Our analysis shows that blockchain is still a niche technology with only 0.88% of the analyzed firms using it. At the same time, certain sectors, namely ICT, banking & finance, and (management) consulting, show higher adoption rates ranging from 3.50% to 4.50%. Most blockchain companies are located at or close to one of the financial centers. Young firms whose business model is (partly) based on blockchain technology also locate themselves close to these centers. Thus, despite blockchain technology often being explicitly characterized as decentralized and distributed in nature, these adoption and strategic location decisions lead to "blockchain clusters". |
| Keywords: | technology adoption, blockchain technology, geographical distribution of firms, natural language programming |
| JEL: | C45 O33 R30 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:289452&r=pay |
| By: | Nic Spearman |
| Abstract: | Central banks world-wide are working to future-proof their role in a rapidly changing digital world. In this context, retail central bank digital currency (rCBDC) presents a potential tool for addressing key policy challenges going forward. These include monetary policy transmission, financial stability, payment system inefficiencies, and financial market failures. Addressing these challenges as well as improving integration with global payment systems are central to the SARBs strategic focus areas. Various rCBDC projects are in experimental stage working to assess policy uses and potential designs. These provide useful case studies for the SARB to understand the need for rCBDC and its potential policy spill-over effects. Understanding these impacts is important for ensuring the SARBs capacity to respond timeously and appropriately to the rapidly changing digital payment environment. For policy makers concerned by the prospect of currency substitution, a key economic lesson is that issuing rCBDC will not arrest currency substitution as it does not address the underlying economic factors that drive substitution. |
| Date: | 2022–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:rbz:oboens:11040&r=pay |
| By: | Junliang Luo; Stefan Kitzler; Pietro Saggese |
| Abstract: | We explore the adoption of graph representation learning (GRL) algorithms to investigate similarities across services offered by Decentralized Finance (DeFi) protocols. Following existing literature, we use Ethereum transaction data to identify the DeFi building blocks. These are sets of protocol-specific smart contracts that are utilized in combination within single transactions and encapsulate the logic to conduct specific financial services such as swapping or lending cryptoassets. We propose a method to categorize these blocks into clusters based on their smart contract attributes and the graph structure of their smart contract calls. We employ GRL to create embedding vectors from building blocks and agglomerative models for clustering them. To evaluate whether they are effectively grouped in clusters of similar functionalities, we associate them with eight financial functionality categories and use this information as the target label. We find that in the best-case scenario purity reaches .888. We use additional information to associate the building blocks with protocol-specific target labels, obtaining comparable purity (.864) but higher V-Measure (.571); we discuss plausible explanations for this difference. In summary, this method helps categorize existing financial products offered by DeFi protocols, and can effectively automatize the detection of similar DeFi services, especially within protocols. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.00034&r=pay |
| By: | Joel Waldfogel |
| Abstract: | Regulators around the world are discussing, or taking action to limit, self-preferencing by large platforms. This paper explores Amazon's search rankings of its own products as the European Union's Digital Markets Act (DMA) was coming into effect. Using data on over 8 million Amazon search results at 22 Amazon domains in the US, Europe, and elsewhere, I document three things. First, conditional on rudimentary product characteristics, Amazon's own products receive search ranks that are 24 positions better on average throughout the sample period. Second, the Amazon rank differential is large in comparison with the differential for 142 other popular brands. Third, shortly after the EU designated Amazon a “gatekeeper” platform in September 2023, the Amazon rank differential fell from a 30 position advantage to a 20 position advantage, while other major brands' rank positions were unaffected. The changed Amazon search rankings appear in both Europe and other jurisdictions. |
| JEL: | L40 L50 L81 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32299&r=pay |
| By: | Domonkos F. Vamossy |
| Abstract: | I explore the relationship between investor emotions expressed on social media and asset prices. The field has seen a proliferation of models aimed at extracting firm-level sentiment from social media data, though the behavior of these models often remains uncertain. Against this backdrop, my study employs EmTract, an open-source emotion model, to test whether the emotional responses identified on social media platforms align with expectations derived from controlled laboratory settings. This step is crucial in validating the reliability of digital platforms in reflecting genuine investor sentiment. My findings reveal that firm-specific investor emotions behave similarly to lab experiments and can forecast daily asset price movements. These impacts are larger when liquidity is lower or short interest is higher. My findings on the persistent influence of sadness on subsequent returns, along with the insignificance of the one-dimensional valence metric, underscores the importance of dissecting emotional states. This approach allows for a deeper and more accurate understanding of the intricate ways in which investor sentiments drive market movements. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.03792&r=pay |
| By: | Fix, Blair |
| Abstract: | When it comes to Bitcoin, there’s one thing that almost everyone agrees on: the network sucks up a tremendous amount of energy. But from there, disagreement is the rule. For critics, Bitcoin’s thirst for energy is self-evidently bad — the equivalent of pouring gasoline in a hole and setting it on fire. But for Bitcoin advocates, the network’s energy gluttony is the necessary price of having a secure digital currency. When judging Bitcoin’s energy demands, the advocates continue, keep in mind that mainstream finance is itself no model of efficiency. Here, I think the advocates have a point. If you want to argue that Bitcoin is an energy hog, you’ve got to do more than just point at its energy budget and say ‘bad’. You’ve got to show that this budget is worse than mainstream finance. On this comparison front, there seems to be a vacuum of good information. For their part, crypto promoters are happy to show that Bitcoin uses less energy than the global banking system. But this result is as unsurprising as it is meaningless. Compared to Bitcoin, global finance operates on a vastly larger scale. So of course it uses more energy. To be meaningful, any comparison between Bitcoin and mainstream finance must account for the different scales of the two systems. So instead of looking at energy alone, we need to look at energy intensity — the energy per unit of circulating currency. That’s what I’ll do here. In this post, I compare the energy intensity of Bitcoin to the energy intensity of mainstream US finance. Which system comes out on top? The results may surprise you. |
| Keywords: | bitcoin, energy, finance, money |
| JEL: | P1 Q4 E4 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:289512&r=pay |
| By: | Gregory M. Dickinson |
| Abstract: | The steady flow of social-media cases toward the Supreme Court shows a nation reworking its fundamental relationship with technology. The cases raise a host of questions ranging from difficult to impossible: how to nurture a vibrant public square when a few tech giants dominate the flow of information, how social media can be at the same time free from conformist groupthink and also protected against harmful disinformation campaigns, and how government and industry can cooperate on such problems without devolving toward censorship. To such profound questions, this Essay offers a comparatively modest contribution -- what not to do. Always the lawyer's instinct is toward analogy, considering what has come before and how it reveals what should come next. Almost invariably, that is the right choice. The law's cautious evolution protects society from disruptive change. But almost is not always, and, with social media, disruptive change is already upon us. Using social-media laws from Texas and Florida as a case study, this Essay shows how social-media's distinct features render it poorly suited to analysis by analogy and argues that courts should instead shift their attention toward crafting legal doctrines targeted to address social media's unique ills. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.02273&r=pay |
| By: | Jack (Peiyao) Ma; Andrea Mantovani; Carlo Reggiani; Annette Broocks; Néstor Duch-Brown |
| Abstract: | Dominant platforms such as Booking.com and Amazon often impose Price Parity Clauses to prevent sellers from charging lower prices on alternative sales channels. We provide quasi experimental evidence on the removal of these price restrictions in France in 2015 for three major international hotel groups. First, our analysis reveals limited and non-significant effects on room prices sold through channels visible to consumers, such as the hotels’ websites or Online Travel Agencies. Second, we document a significant price reduction on sales channels not visible to consumers, such as the hotels’ direct offline channel. Third, we identify a significant shift in sales share from online travel agencies to the hotels’ direct offline channel. |
| Date: | 2024–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:1043&r=pay |
| By: | Laureen de Barsy; Axel Gautier |
| Abstract: | In the past 20 years, large digital platforms have made many acquisitions, mainly young and innovative startups. Few of them have been reviewed by competition authorities and little is known on their evolution after acquisition. This paper intends to fill in this gap by looking at the development of the technologies owned by the acquired firms. We focus on technologies protected by a patent and we investigate whether an acquisition by a big tech contributes to their development. For this analysis, we use patent citations as a proxy for the innovation effort by the acquirer. Our main result is to show that acquisition increases the innovation effort of the acquirer but only temporarily. After 1.5 year, there is no longer a significant impact of the acquisition on the acquirer’s innovation effort. This decline is relatively larger when the acquired patent belongs to a core technology field of the acquiring firm or to a large patent portfolio. On the contrary, citations by the rest of the industry are not negatively affected by acquisition, which does not corroborate the idea that the acquired technology has reached its maturity. |
| Keywords: | mergers, digital, big techs, innovation, patents, killer acquisitions |
| JEL: | D43 G34 K21 L40 L86 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11025&r=pay |
| By: | Ruth A. Judson |
| Abstract: | In principle, physical currency should be disappearing: payments are increasingly electronic, with new technologies emerging rapidly, and governments increasingly restrict large-denomination notes as a way to reduce crime and tax evasion. Nonetheless, demand for U.S. banknotes continues to grow, and consistently increases at times of crisis both within and outside the United States because dollar banknotes remain a desirable store of value and medium of exchange when local currency or bank deposits are inferior. Most recently, the COVID crisis resulted in historic increases in currency demand. After allowing for the effect of crises, U.S. banknote demand appears to be driven by the usual factors determining money demand, with no discernible downward trend. In this work, I review developments in demand for U.S. currency over the past few decades with a focus on developments since early 2020. In addition, I revisit the question of international demand: I present the raw data available for measuring international banknote flows and updates on indirect methods of estimating the stock of currency held abroad. These methods continue to indicate that a large share of U.S. currency is held abroad, especially in the $100 denomination. As shown earlier (Judson 2012, 2017), once a country or region begins using dollars, subsequent crises result in additional inflows: the dominant sources of international demand over recent decades are the countries and regions that were already heavy dollar users in the early to mid-1990s. While international demand for U.S. currency eased during the early 2000s as financial conditions improved, the abrupt return to strong international demand that began with the collapse of Lehman Brothers in 2008 has not slowed and reached new heights over 2020 and 2021. In contrast, however, the growth rate of demand for smaller denominations is slowing, perhaps indicating the first signs of declining domestic cash demand. |
| Keywords: | Currency; Banknotes; Dollarization; Crisis |
| JEL: | C82 E40 E49 |
| Date: | 2024–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgif:1387&r=pay |
| By: | Cheikh T. Ndour (Cheikh Anta Diop University, Dakar, Senegal); Simplice A. Asongu (ASPROWORDA, Cameroon) |
| Abstract: | Purpose – This study examines the relevance of information and communication technologies in the effect of gender economic inclusion on environmental sustainability. Design/methodology/approach – The focus is on a panel of 42 sub-Saharan African countries over the period 2005-2020. The empirical evidence is based on generalized method of moments. The environmental sustainability indicator used is CO2 emissions per capita. Two indicators of women's economic inclusion are considered: women's labour force participation and women's unemployment. The chosen ICT indicators are mobile phone penetration, internet penetration and fixed broadband subscriptions. Findings – The results show that: (i) fixed broadband subscriptions represent the most relevant ICT moderator of gender economic inclusion for an effect on CO2 emissions; (ii) negative net effects are apparent for the most part with fixed broadband subscriptions (iii) both positive ICT thresholds (i.e., critical levels for complementary policies) and negative ICT thresholds (i.e., minimum ICT levels for negative net effects) are provided; (iv) ICT synergy effects are apparent for female unemployment, but not for female employment. In general, the joint effect of ICTs or their synergies and economic inclusion should be a concern for policymakers in order to better ensure sustainable development. Moreover, the relevant ICT policy thresholds and mobile phone threshold for complementary policy are essential in promoting a green economy. Originality/value –The study complements the extant literature by assessing linkages between information technology, gender economic inclusion and environmental sustainability. |
| Keywords: | ICT, Gender inclusion; Environment sustainability; Sub-Saharan Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/001&r=pay |
| By: | Simplice A. Asongu (Oxford, UK); Sara le Roux (Oxford, UK) |
| Abstract: | The study investigates the role of governance (i.e., ‘voice & accountability’, political stability/no violence, regulatory quality, government effectiveness, corruption-control and the rule of law) in the incidence of short-term debt services on infrastructure development in the perspective of telecommunication infrastructure and access to electricity. The focus of the study is on 52 African countries for the period 2002-2021. The generalized method of moments is employed as estimation strategy and the following findings are established. Debt service has a negative unconditional effect on access to electricity and telecommunication infrastructure. Governance dynamics moderate the negative effect of debt service on infrastructure dynamics. Effective moderation is from regulatory quality and corruption-control for access to electricity and from government effectiveness, regulatory quality, corruption-control and rule of law, for telecommunication infrastructure. Policy implications are discussed. |
| Keywords: | Debt service, governance; information technology; access to electricity; Africa |
| JEL: | F34 H63 O10 O40 O55 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/003&r=pay |
| By: | Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The purpose of the study is to assess if a policy of female inclusive education should be complemented with a policy of female ownership of bank accounts to fight female unemployment. The study therefore examines how female ownership of bank accounts moderates the incidence of female education on female unemployment. The focus is on 44 Sub-Saharan African (SSA) countries for the period 2004 to 2018 and the empirical evidence is based on interactive quantile regressions. The interactions are tailored such that female ownership of bank accounts influence the effect of female inclusive education on female unemployment. From the empirical findings, it is evident that female ownership of bank accounts does not effectively moderate female education in order to reduce female unemployment unless complementary policies are considered. The complementary policies should be in view of boosting the interaction between female education and female bank account ownership in increasing employment opportunities for the female gender and by extension, reducing female unemployment. The invalidity of the moderating effect is robust to the inclusion of more elements in the conditioning information set as well as accounting for other dimensions of endogeneity such as simultaneity and the unobserved heterogeneity. Policy implications are discussed. This study contributes to the extant literature by assessing how female ownership of bank accounts complement female inclusive education to reduce female unemployment. |
| Keywords: | Africa; Inequality; Gender; Inclusive development; Unemployment |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/009&r=pay |
| By: | Vijay Mohan; Peyman Khezr |
| Abstract: | In this paper, we take a close look at a problem labeled maximal extractable value (MEV), which arises in a blockchain due to the ability of a block producer to manipulate the order of transactions within a block. Indeed, blockchains such as Ethereum have spent considerable resources addressing this issue and have redesigned the block production process to account for MEV. This paper provides an overview of the MEV problem and tracks how Ethereum has adapted to its presence. A vital aspect of the block building exercise is that it is a variant of the knapsack problem. Consequently, this paper highlights the role of designing auctions to fill a knapsack--or knapsack auctions--in alleviating the MEV problem. Overall, this paper presents a survey of the main issues and an accessible primer for researchers and students wishing to explore the economics of block building and MEV further. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.19077&r=pay |
| By: | Ekene ThankGod Emeka (University of Nigeria, Nsukka, Nigeria); Simplice A. Asongu (Johannesburg, South Africa); Yolande E. Ngoungou (Yaoundé, Cameroon) |
| Abstract: | This study examines the effects of gender economic inclusion on economic complexity in Africa, as well as the moderating role of governance institutions on the relationship between gender inclusion and economic complexity. The analysis was based on the pooled OLS and the system generalized method of moments (GMM) estimation techniques, with data from 34 African economies between 2010-2021. The analysis uncovered several important findings. First, from the most robust model (i.e., GMM), positive synergies are apparent because gender economic inclusion promotes economic complexity, and governance dynamics further enhance the positive effect of gender economic inclusion on economic complexity. Second, regardless of the adopted technique, a predominantly positive and statistically significant relationship was identified between gender economic inclusion and economic complexity. Third, it was observed that while governance institutions exhibit a negative relationship with economic complexity, they play a positive role in moderating the relationship between gender inclusion and economic complexity. Fourth, factors such as foreign direct investment inflow, trade openness, and international tourism were identified as potent drivers of economic complexity in Africa, while the impact of human capital appears to be relatively subdued. Consequently, the study emphasizes the need for institutional reforms to improve governance transparency, accountability, and efficiency, alongside advocating for gender-inclusive policies and increased investment in education. |
| Keywords: | Gender economic inclusion; economic complexity; governance institutions; panel data; Africa |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/012&r=pay |
| By: | Jason P Davis; Jian Bai Li |
| Abstract: | How are new technologies like generative AI quickly adopted and used by executive and managerial leaders to create value in organizations? A survey of INSEAD's global alumni base revealed several intriguing insights into perceptions and engagements with generative AI across a broad spectrum of demographics, industries, and geographies. Notably, there's a prevailing optimism about the role of generative AI in enhancing productivity and innovation, as evidenced by the 90% of respondents being excited about its time-saving and efficiency benefits. Analysis revealed different attitudes about adoption and use across demographic variables. Younger respondents are significantly more excited about generative AI and more likely to be using it at work and in personal life than older participants. Those in Europe have a somewhat more distant view of generative AI than those in North America in Asia, in that they see the gains more likely to be captured by organizations than individuals, and are less likely to be using it in professional and personal contexts than those in North America and Asia. This may also be related to the fact that those in Europe are more likely to be working in Financial Services and less likely to be working in Information Technology industries than those in North America and Asia. Despite this, those in Europe are more likely to see AGI happening faster than those in North America, although this may reflect less interaction with generative AI in personal and professional contexts. These findings collectively underscore the complex and multifaceted perceptions of generative AI's role in society, pointing to both its promising potential and the challenges it presents. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.04543&r=pay |