Institutional Framework for The Development of Artificial Intelligence in The Industry

Abstract

The article is devoted to the institutions of dissemination and application of artificial intelligence in industry. Artificial intelligence (AI) is currently one of the most dynamically developing technologies and outcomes of the Fourth Industrial Revolution with a huge transformational impact on the economy. The article further confirms the inclusion of this technology in all industrial frontiers of recent years. In industry, artificial intelligence has a high potential of use with prodigious positive effects, but this potential and positive results are limited by insufficiently designed institutional framework for the development of artificial intelligence. To establish a way of institutionalizing AI in industry, the article systematizes the drivers and limiting factors of its cost-effective deployment in industrial companies. Based on this, the authors outlined a conceptual institutional framework for artificial intelligence in industry, including institutions of different levels as well as formal and informal institutions. The stimulating and limiting function of institutions in the deployment of AI is considered from the strategic perspective and operational regulation. The article substantiates the priority of artificial intelligence legislation, which goes beyond both individual countries and institutional conditions focused on a specific technology. It is necessary to develop the digital economy, activate innovations, create a competitive environment, etc. The authors have confirmed the importance of a broader institutional context of economic and technological development in the context of Industry 4.0. The article also pays attention to industry standards and ethical standards for the dissemination of artificial intelligence. At the same time, the influence of the institute of trust, partnerships, and digital corporate culture on the adoption and deployment of artificial intelligence technologies in industrial companies is taken into account. It is determined that, to understand and accept AI (include it into decision-making processes and business practices), institutions are required to make technologies more understandable for perception.