CEU Electronic Theses and Dissertations, 2025
| Author | Ion, Alexandra |
|---|---|
| Title | AI IN BUSINESS: A VICTIM OF OVERREGULATION? Assessing the Impact of AI Regulation on Business Adoption Rate |
| Summary | The rapid advancement of AI technology presents both unprecedented opportunities and significant challenges. While businesses must act fast to leverage AI's benefits, governments face the challenge of mitigating associated risks, including transparency, bias, intellectual property concerns, and privacy issues. However, it is still unclear if regulation may enable or hinder the adoption of AI by businesses what consequently could have bigger implications for the countries, such as having an influence on the economic growth. This thesis examines the impact of regulatory frameworks on AI adoption in businesses by answering the question “How do differences in regulatory frameworks influence the integration of AI technologies in business?“. This question will be answered using a Difference-in-Differences approach, comparing France, an EU member state with an enforced AI policy, with the United Kingdom, which has recently adopted a more hands-off approach and has yet to implement a dedicated AI regulation. The findings show that the business AI adoption rate is 35 percentage points lower when a policy exists. However, this evidence should be analyzed in the years to come, as the policy has been implemented only since one year. Balancing regulation and technological progress is critical to fostering economic growth, maintaining competitiveness, and addressing future societal challenges such as labor market shifts and the digital divide. |
| Supervisor | Yusaf Akbar |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2025/ion_alexandra.pdf |
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