Abstract. Artificial intelligence is one of the most widely discussed topics in recent years, remarkably following the pandemic. During the pandemic, numerous industries and organizations have focused on the development of artificial intelligence due to the shift to remote learning and working. This shift also caused expanded investments and research on AI driven by the growing demand of for AI-powered tools across various sectors such as education, healthcare, and business. This paper analyses the determinants of AI performance and examines the relationship between a countrys AI performance and its economic growth, measured by Gross Domestic Product (GDP). This paper employs Pearson Pairwise Correlation Multiple Linear Regression, and Simple Linear Regression models with a sample of 62 different countries to uncover the most influential factors impacting a country's AI performance and its subsequent influence on GDP. During the process of constructing the multiple linear regression model, this paper also evaluates the collinearity diagnostics such as VIF and tolerance level to prevent multicollinearity. This study finds that a countrys innovation skill, featuring its research and development capabilities, is the primary driver influencing its success in AI development. Subsequently, this paper concludes that advanced AI performance can significantly contribute to a countrys economic growth, further emphasizing the importance of progressive AI development.
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