Determining the initial and subsequent impact of artificial intelligence adoption on economy: a macroeconomic survey from ASEAN

Abstract

The adoption of AI is an ongoing phenomenon in today’s economy in all the industries. The purpose of this paper is to examine the economic impact of AI adoption in the region of ASEAN. To achieve this objective, structural questionnaire was developed for the various industry experts in targeted region. A sample of 240 experts was finally obtained over a time span of 6 weeks through online structural questionnaire approach. For measuring AI adoption, twelve items, initial economic impact (seven items), and subsequent economic impact (six items) were finally added in the questionnaire. For analyses purpose, descriptive statistics, structural equation modelling, and regression analyseswereapplied, examining the both initial and subsequent economic impact of AI adoption. Findings through structural model indicates that overall both initial and subsequent impact are significantly determined by AI adoption in related industries. Additionally, in depth analyses for the individual AI items as their initial and subsequent economic impact indicate that Usage of the data for AI adoption, clear strategy for AI adoption, successful mapping for AI adoption and overall positive attitude towards AI adoption have their significant and positive influence on initial economic indicators. Whereas, as per subsequent economic impact, factors like effective usage of data for AI adoption, assessing the right skills of individuals for AI adoption and positive attitude towards AI adoption are significantly impacting on material investment, capital investment, increasing unemployment, higher economic output, higher return on capital and higher wages for the existing labor. These findings have provided an outstanding evidence in the field of AI and its economic impact in the region of ASEAN and can be considered as initial contribution in related fields. Both industry exports and macroeconomic decision makers can significantly utilize the findings to develop their conceptual framework and understanding for the integration between AI adoption and economy. Additionally, this study can work as reasonable justification for implementing the more adoption of AI in various industries as it has positive economic outcome (both initial and subsequent). However, one of the key limitations of this study is limited sample size and only 240 industry exports were targeted from selected industries in ASEAN. Future study could be reimplemented on similar topic with expanding the sample size for better findings and more generalization.