Artificial Intelligence: the catalyst for new industrial revolution and economic development?

Cristian Romeo Spătaru, Valer Bocan and Cristian Constantin Popescu
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Cristian Romeo Spătaru: “Alexandru Ioan Cuza” University of Iasi, Romania
Valer Bocan: POLITEHNICA University of Timisoara, Romania
Cristian Constantin Popescu: “Alexandru Ioan Cuza” University of Iasi, Romania

Theoretical and Applied Economics, 2025, vol. XXXII, issue Special, Summer, 145-160

Abstract: Research-development-innovation drives economic growth and competitiveness. AI, a key element of Industrial Revolution 4.0 (transitioning to 5.0), transforms industries and society, offering innovation but also risks. This study reviews AI’s role as a catalyst for industrial and economic change. Using multiple regression on EU27 data (2017–2022), it examines factors influencing "AI software development - Very High-impact AI projects (%)". The tested hypothesis states that talent availability and R&D investments shape AI project scope. Independent variables include R&D expenditure, venture capital in AI, researcher count, and the global innovation index. Results confirm that AI development depends on these factors. The findings provide insights for policymakers and industry leaders, highlighting the need for regulations to manage risks. Future research should address AI governance and long-term effects.

Keywords: AI projects; investments in AI; R&D; Global Innovation Index; researchers in R&D. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xxxii:y:2025:i:special-summer:p:145-160

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