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How will Generative AI impact communication?

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  • Gans, Joshua S.

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.

Suggested Citation

  • Gans, Joshua S., 2024. "How will Generative AI impact communication?," Economics Letters, Elsevier, vol. 242(C).
    • Handle: RePEc:eee:ecolet:v:242:y:2024:i:c:s0165176524003562
    DOI: 10.1016/j.econlet.2024.111872
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    References listed on IDEAS

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    1. Jacques Crémer & Luis Garicano & Andrea Prat, 2007. "Language and the Theory of the Firm," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(1), pages 373-407.
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    3. Mathias Dewatripont & Jean Tirole, 2005. "Modes of Communication," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1217-1238, December.
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    More about this item

    Keywords

    Artificial intelligence; Large language models; Communication; Signalling; Salience;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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