AI foundation models that are part of an open ecosystem have significant potential to accelerate the automation of activities and processes, potentially leading to growth gains in many key sectors across Europe, a new economic study by Oxera reveals.
AI has significant potential to accelerate the automation of activities and processes, such as the use of virtual assistants in simplifying the customer journey or the use of AI in optimising pricing strategies.
These types of activities have the potential to lead to growth gains in many sectors—from technology start-ups to key pillars of the economy such as telecoms, financial services, the public sector, automotive and retail.
The ongoing debate around how European businesses and policymakers can harness the value of Generative Artificial Intelligence (AI), while also embedding robust regulation, continues with new findings demonstrating the opportunity that foundation models present.
A new economic study commissioned by Meta and carried out by Oxera, a leading economics and finance consultancy, considers the risks and benefits—focusing in particular on the different layers of the value chain by comparing the benefits and disadvantages of open versus closed foundation models. The study assesses the specific opportunities of open foundation models, such as the ability to unlock significant additional productivity gains through efficiencies.
In order to ensure a successful boost to productivity, these new findings stress that businesses and policymakers must embrace the opportunity resulting from open AI foundation models, which are uniquely positioned to unlock value to the eventual benefit of businesses and society more broadly.
Johan Keetelaar, Senior Adviser, based in Oxera’s Amsterdam office said ‘Oxera’s research offers a vital contribution to the debate on AI foundation models. The report highlights unique aspects of open ecosystems and draws on a range of in-depth interviews with senior industry participants across Europe. Our findings offer businesses and policymakers insights which can help shape AI regulation to maximise the opportunity for AI to significantly improve productivity across Europe, benefitting business and society’.