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Openness in AI and downstream governance: A global value chain approach

Created by
  • Haebom

Author

Christopher Foster

Outline

This paper critically analyzes the rapid development of artificial intelligence (AI) and its resulting economic impact, particularly its connection to data power and platform capitalism. It focuses on the rapid proliferation of openness in the AI sector, including "open source" and free provision, and examines the impact of this openness on technology transfer and the potential for catch-up. The paper conceptualizes AI openness as a specific type of inter-firm relationship and, through value chain analysis, presents a framework for analyzing the "outsourcing" of leading AI firms and the types of governance and control emerging in downstream value chains. Ultimately, while maintaining a critical perspective on the power of leading AI firms, it expands our understanding of the AI production sector by considering the potential technological spillover effects of fierce competition in the AI sector.

Takeaways, Limitations

Takeaways:
We extend existing research by approaching the openness of AI from a new perspective through value chain analysis.
Increased understanding of AI companies' outsourcing strategies and governance and control practices in their downstream value chains.
Provides an in-depth analysis of the technological ramifications and economic impact of AI.
A new perspective on the impact of openness in AI on technology transfer and catch-up potential.
Limitations:
Lack of concrete analysis of the actual effects and limitations of AI companies' claims of "openness."
The possibility that it may not fully reflect the complexity and diversity of the AI value chain.
The simple use of the concept of “openness” may not fully encompass the diverse forms of the AI ecosystem.
The focus is on presenting a conceptual framework rather than empirical analysis.
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