This working paper explores the tension between rapidly increasing artificial intelligence investment costs and the slower pace of productivity growth, raising concerns about a potential 'economic winter' for AI. AI has shown significant technological progress, particularly with machine learning...

European Union policymakers want to close the artificial intelligence innovation gap with the United States, as a way to accelerate lagging productivity growth. The EU focus is on expanding an existing supercomputer network with more AI hardware and computing infrastructure, with taxpayer...

Current EU data market regulation is fragmented and fails to realize the full social value of data. Economies of scope in the reuse and aggregation of non-rival data, together with transaction costs, are the main sources of market failures. The European Health Data Space offers an almost perfect...

Technical restrictions on access to and re-use of data may result in failures in data markets and data-driven services markets. Th is paper examines three new EU data regulations (the European Health Data Space, the Data Act and the Digital Markets Act) that vary substantially in mandatory...

Generative artificial intelligence (GenAI) models have stirred considerable controversy about copyright protection for AI training inputs and model outputs. The European Union's AI Act will require model developers to be transparent about their use of training inputs such as text, images and...

The rapidly evolving market for artificial-intelligence services is apparently thriving and very competitive, with a growing number of AI start-ups and ever larger and more capable AI models. Investors are pouring large amounts of money into start-ups and into a few big tech firms that have the...

The proposed European Union Data Act gives users access and portability rights to the data generated by their use of tangible digital products and devices. This pro-competitive measure weakens the de-facto monopolistic control product manufacturers have over product data. However, the Data Act...

The first part of this paper focuses on competition between search engines that match user queries with webpages. User welfare, as measured by click-through rates on top-ranked pages, increases when network effects attract more users and generate economies of scale in data aggregation. However,...

Digital platforms, empowered by artificial intelligence algorithms, facilitate efficient interactions between consumers and merchants that allow the collection of profiling information which drives innovation and welfare. Private incentives, however, lead to information asymmetries resulting in...

By mid-2024, artificial intelligence large language models (LLMs) were running into diminishing returns to scale in training data and computational capacity. LLM training began to shift away from costly pre-training to cheaper fine-tuning and allowing LLMs to 'reason' for longer before replying...