Defining AI: Novelty and Digital Transformation

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Questions and Answers

Which of the following best describes the current understanding of AI's novelty?

  • AI is entirely new, with no historical precedents or parallels.
  • AI's fundamental novelty lies in its complete disruption of existing technological infrastructures, rendering past innovations obsolete.
  • AI's transformative potential stems primarily from its unprecedented scale and combination with other digital technologies. (correct)
  • AI's impact is limited to specific sectors and does not represent a significant departure from previous technological advancements.

Considering the digital economy as a 'phase transition', which driving factor is most influential in its evolution?

  • The rapid pace of evolution of underlying technologies like computation, storage, and communication. (correct)
  • The decreasing adoption of software technology across various sectors, limiting its impact on automation and decision-making.
  • The static and unchanging nature of pre-existing information and communication technologies (ICT).
  • A disconnection between the transition of activities/transactions and the fundamental infrastructure of the Internet.

How do 'sustaining technologies' differ from 'disruptive technologies' according to the content?

  • 'Sustaining technologies' are more expensive and complex, whereas 'disruptive technologies' cater to established customers.
  • 'Sustaining technologies' underperform in mainstream markets, while 'disruptive technologies' improve existing product performance.
  • 'Sustaining technologies' improve established products, while 'disruptive technologies' offer different features valued by new customer segments. (correct)
  • There is no effective difference between 'sustaining technologies' and 'disruptive technologies'.

What critical attribute defines General Purpose Technologies (GPTs)?

<p>Pervasiveness enabling a cascade of further inventions and innovations in downstream sectors. (B)</p> Signup and view all the answers

Which of the following statements accurately reflects the concept of 'radical innovation'?

<p>It stems from combinations of changes in a technology/product function(s) and components' configuration. (D)</p> Signup and view all the answers

According to the passages provided, what is the primary distinction between Schumpeterian and non-Schumpeterian approaches to explaining Long Waves?

<p>Schumpeterian approaches attribute Long Waves to innovation, whereas non-Schumpeterian approaches consider factors such as political and economic structures. (B)</p> Signup and view all the answers

What is the role of 'technological trajectories' in the context of techno-economic paradigms?

<p>Guiding the evolution of innovations and connecting them along their development path. (B)</p> Signup and view all the answers

How do 'technology systems' contribute to the formation of a techno-economic paradigm?

<p>By clustering dynamically interconnected innovations, facilitating broader economic transformation. (D)</p> Signup and view all the answers

According to the content, what key factor determines whether a technological innovation becomes a 'technological revolution'?

<p>Its ability to connect various sectors and generate substantial economic development. (C)</p> Signup and view all the answers

Which characteristic of technological innovation is most closely associated with the concept of a 'techno-economic paradigm'?

<p>Its transformation of the entire economy, involving connections with the institutional/cultural dimension of society. (A)</p> Signup and view all the answers

According to the information presented on the succession of technological revolutions, what phases are commonly observed?

<p>Gestation, Installation, Deployment, and Maturity/Decline. (D)</p> Signup and view all the answers

Which of the following best describes the 'Innovator's Dilemma' as it relates to disruptive innovation?

<p>Incumbents sow the seeds of their demise by continuing successful practices and ignoring technologies that initially seem less profitable. (D)</p> Signup and view all the answers

What is the significance of the question: 'Is AI igniting a new technological revolution, or is it the tail-end of the previous one (ICT)?'

<p>It helps shape the understanding of future scenarios and regulation. (A)</p> Signup and view all the answers

What distinguishes 'technological revolutions' from other forms of technological advancement?

<p>They transform the entire economy and generate surges of development. (A)</p> Signup and view all the answers

According to the passages, why might incumbents find it difficult to respond effectively to disruptive innovations?

<p>Incumbents may undervalue disruptive technologies because they initially underperform in mainstream markets. (D)</p> Signup and view all the answers

Flashcards

Digital Technology

Technology that converts analogue data into machine-readable formats.

Moore's Law

Exponential increase in transistors per chip.

Radical Innovation

An innovation that significantly changes technology or products.

Radical Innovation: Definition

Combination of changes in technology/product function and components.

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Long Waves

Long term fluctuations in the economy.

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Technological Trajectories

Innovation, diffusion, incremental development.

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Technology Systems

Clusters of dynamically interconnected innovations.

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Technological Revolutions

Transforms the entire economy.

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Techno-economic Paradigm

The 'envelope' of each technological revolution.

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Sustaining Technologies

Technologies that outperform established tech in mainstream markets.

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Disruptive Technologies

Technologies that under-perform but offer fringe/new values.

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Disruptive Innovation

Innovation that attacks established products.

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General Purpose Technologies

Technologies with many uses across most of the economy.

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GPT definition

A single or cluster of technologies with many uses.

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Why GPTs are important

They enable mechanisms that kick start technological revolutions

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Study Notes

  • Lecture 2 discusses the definition of AI and its novelty.

AI's Transformative Potential

  • AI's potential impact spans workplace automation, business models, scientific discovery, and social interactions.

AI's Combination with Other Technologies

  • AI combines with technologies at an unprecedented scale with digital technologies like sensors and IoT
  • The combination results in continuous improvement and pervasiveness.
  • Its characteristics relate to its technological substrate.
  • It resembles past innovations, aiding in understanding and governing technology.

AI and Digitalisation

  • Digital technology converts analogue data into a machine-readable format.
  • The digital economy is the result of ‘phase transition’ driven by the evolution of ICT.
  • This evolution includes rapid technological advancements, data accumulation, Internet integration, and software adoption.
  • The process automates decision-making.
  • Transformation brings benefits, such as consumer welfare, and challenges for society. It also affects strategy and policy.

Moore's Law

  • Moore's Law relates to the rapid pace of evolution of key technologies

Types of Breakthrough Innovations Similar to AI

  • Radical innovation
  • Long Waves and Techno-economic paradigms
  • Disruptive innovation
  • General Purpose Technology

Radical Innovation

  • Radical innovation is a type of innovation emerging from changes in technology/product function(s) and components' configuration.

Long Waves

  • Long waves are long term socio-technical and historical.
  • They're quasi-predictable, long-term fluctuations in the economy, displaying historical regularity.
  • Causes include political hegemonies, accumulation cycles, and innovation.

Techno-Economic Paradigms

  • Radical innovation brings new functions
  • It creates industries that push and pull existing economic activities.
  • Technological trajectories describe innovation, diffusion, and development.
  • Innovations connect along their evolutionary path.
  • Technology systems cluster dynamically connected innovations.
  • Single innovations connect in technology systems and technology systems connect.
  • Technological revolutions transform the economy and generate development.
  • Techno-economic paradigms involve societal connections and international influence.

Deployment of Technological Revolutions

  • One question is whether AI starts a new technological revolution or if it’s the tail-end of ICT.

Succession of Technological Revolutions

  • Each revolution includes an installation period, a turning point, and a deployment period.

Disruptive Innovation

  • Disruptive innovation is used as a strategic management tool.
  • Based on Christensen's book "The Innovator's Dilemma".
  • Innovation that sows the seeds of incumbency's demise.
  • Sustaining technologies improve established product performance in mainstream markets.
  • Disruptive technologies under-perform in mainstream markets, but offer value.
  • Disruptive innovation attacks established products from below.
  • New technologies spur market turbulence, allowing radical change

General Purpose Technologies (GPTs)

  • GPTs are technologies that are a class of radical innovations
  • They're key in shaping a technological era.
  • Steam engines, electric dynamos, semiconductors, and lasers are examples.
  • These have uses in most of the economy
  • They evolve in efficiency and range of use.
  • They complement downstream sectors, enabling further innovations.
  • They act as enabling mechanisms that kick-start technological revolutions.

Taking Stock Points

  • AI is potentially transformative.
  • The features of current AI are weak with connectionist algorithms.
  • It is similar to certain classes of innovation: radical innovation
  • GPT induces innovation in downstream technologies.
  • AI captures long term effects and can effect market structures.

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