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Developments in Artificial Intelligence markets: New indicators based on model characteristics, prices and providers

Author

Listed:
  • Christophe André
  • Manuel Bétin
  • Peter Gal
  • Paul Peltier

Abstract

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.

Suggested Citation

  • Christophe André & Manuel Bétin & Peter Gal & Paul Peltier, 2025. "Developments in Artificial Intelligence markets: New indicators based on model characteristics, prices and providers," OECD Artificial Intelligence Papers 37, OECD Publishing.
    • Handle: RePEc:oec:comaaa:37-en
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    More about this item

    Keywords

    AI economic frontier; AI market developments; AI models; Artificial intelligence (AI); economics of AI; generative AI; performance and price of AI;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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