Events

Dr. Sang-Pil Han
Associate Professor of Information Systems
W.P. Carey School of Business
Arizona State University

This study investigates the transformative influence of Generative Artificial Intelligence (AI), particularly Large Language Models (LLMs). The research primarily focuses on strategic choices faced by AI service providers: to either opt for radical innovation by funding and developing Generative AI technologies such as fine-tuning LLMs on specific customer datasets, or to favor incremental innovation by enhancing the performance of existing Non-Generative AI models. Our findings reveal a notable trend: following the advent of ChatGPT, a significant instance of Generative AI, demand for Non-Generative AI services fell by approximately 34% in our research context. Our analysis further delves into the reasons behind this diminishing demand for Non-Generative AI, scrutinizes the role of its performance as a potential mitigating factor, and explores the future potential of Generative AI, particularly as it evolves into more advanced models like GPT-4, to catalyze this shift further. The insights from this research not only elucidates the pivotal dynamics underpinning this transition towards Generative AI but also offer valuable guidance for decision-making among AI service providers across various sectors.