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Developments in Artificial Intelligence markets: New indicators based on model characteristics, prices and providers
Given AI’s potential to generate productivity and welfare gains, the paper provides new empirical evidence about AI markets to assess whether potential AI users benefit from favourable market developments regarding prices, quality and variety. It leverages an extensive data collection covering Generative AI model characteristics, including their performance and price, developers, cloud providers, and downstream AI-powered applications globally over the past two years. It finds several trends that are indicative of dynamism for the time being ？ including declining quality-adjusted prices and a growing number of market players and model offerings ？ but several risks remain, related to bottlenecks in the key inputs to AI, notably data, computing power and skills.
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