The effects of generative AI on productivity, innovation and entrepreneurship

June 20, 2025

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Research on the impact of generative artificial intelligence (AI) on productivity, innovation, and entrepreneurship highlights the extent to which AI automates tasks, enhances skills, and transforms business operations. This paper examines the role of AI in fostering creativity, accelerating research and development and lowering entry barriers for businesses, while also noting challenges related to trust and human expertise. Findings suggest that AI’s effectiveness depends on the user’s experience and the task carried out, with human-AI collaboration being key to maximising its potential. The review identifies gaps in current research, particularly regarding AI’s long-term business effects and workers’ understanding of its limitations, emphasising the need for further studies to guide its responsible and effective use.

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