How will Generative AI impact Communication?

Joshua Gans

No 32690, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines the impact of Generative AI (GAI) on communication through the lens of salience and signalling models. It explores how GAI affects both senders' ability to create salient messages and receivers' costs of absorbing them. The analysis reveals that while GAI can increase communication by reducing costs, it may also disrupt traditional signalling mechanisms. In a salience model, GAI generally improves outcomes but can potentially reduce receiver welfare. In a pure signalling model, GAI may hinder effective communication by making it harder to distinguish high-quality messages. This suggests that GAI's introduction necessitates new instruments and mechanisms to facilitate effective communication and quality assessment in this evolving landscape.

JEL-codes: D83 O31 (search for similar items in EconPapers)
Date: 2024-07
New Economics Papers: this item is included in nep-ain and nep-mic
Note: PR
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Published as Joshua S. Gans, 2024. "How will Generative AI impact communication?," Economics Letters, vol 242.

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