Socioeconomic and Cultural Determinants of the Development of Artificial Intelligence

Abstract

This study assesses the impact of socioeconomic and cultural factors that are likely to have effects on the development of artificial intelligence at the national level. This technology is evaluated both globally and in terms of its components: qualified users, technical capabilities, regulations, societal support, academic support, algorithms and platforms, support from public authorities, and private economic initiatives. Socioeconomic determinants include economic development and the speed of economic growth, funding for education and research and development, high-tech exports, urbanisation, population, and workforce. Cultural determinants are represented by national aggregate Hofstede’s cultural indicators. The available data cover 60 countries from all continents and the period from 2012 to 2022. The research methodology employs hierarchical clustering and robust cross-sectional regression models to avoid heteroscedasticity. The main results indicate highly significant effects of GDP per capita, its growth rate, research and development funding, and the degree of urbanisation. Among cultural factors, only uncertainty avoidance is statistically significant. The multidimensional hierarchical clustering identified six groups corresponding to different national behavioursregarding preferences for the development of certain artificial intelligence technologies and activities.

Keywords

• artificial intelligence
• socioeconomic determinants
• hofstede cultural values
• robust cross-sectional regressions
• hierarchical clustering