CC BY
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УДК 330.1, 332.1, 338.1 JEL O330
THE ECONOMIC EFFECTS OF CHATGPT TECHNOLOGY IN THE DIGITAL AGE: OPPORTUNITIES AND CHALLENGES
Akanksha Taunk Doctor of Economic Sciences, Director, International Institute of Management Studies, Pune, Republic of India.
Samrat Ray Candidate of Economic Sciences, Dean and Head of International Relations, ORCID 0000-0002-9845-2974, e-mail: s.ray@iimspune.edu.in, International Institute of Management Studies, Pune, Republic of India.
Kornev P. M. master's student of Higher School of Administrative Management, ORCID 0000-0002-2431-9265, e-mail: dtctvfevralskiy@gmail.com, Peter the Great Polytechnical University, Saint-Petersburg, Russian Federation.
Abstract. This research examines the economic implications of ChatGPT technology in the contemporary digital era, specifically investigating its influence on productivity, employment patterns, market dynamics, and innovation. Upon doing a thorough analysis, it becomes apparent that ChatGPT has the capacity to profoundly transform several sectors. However, this transformative potential is accompanied by some obstacles, including the possibility of job displacement and ethical implications. The results emphasize the need of targeted
worker upskilling programmes and the implementation of ethical standards for the use of artificial intelligence, especially in industries that handle sensitive information. In addition, the promotion of staff retraining programmes and the cultivation of a culture that emphasizes continuous learning are vital in order to effectively adapt to the ever-changing terrain of artificial intelligence technology.
Keywords: ChatGPT, economic impact, productivity, market dynamics, innovation, upskilling, ethical criteria.
ЭКОНОМИЧЕСКИЕ ЭФФЕКТЫ ТЕХНОЛОГИИ CHATGPT В ЭПОХУ ЦИФРОВИЗАЦИИ: ВОЗМОЖНОСТИ И ВЫЗОВЫ
Аканкша Таунк д-р экон. наук, доцент, директор, Международный институт управления и исследований, г. Пуна, Республика Индия.
Самрат Рай канд. экон. наук, доцент, декан и руководитель международных отношений, ORCID 0000-0002-9845-2974, e-mail: s.ray@iimspune.edu.in, Международный институт управления и исследований, г. Пуна, Республика Индия.
Корнев П. М. магистрант Высшей школы административного управления, ORCID 0000-0002-2431-9265, e-mail: dtctvfevralskiy@gmail.com, Санкт-Петербургский политехнический университет имени Петра Великого, г. Санкт-Петербург, Российская Федерация.
Аннотация. Данное исследование рассматривает экономические последствия технологии ChatGPT в современной цифровой эпохе, в частности, исследует
её влияние на производительность, паттерны занятости, динамику рынка и инновации. После проведения тщательного анализа становится очевидным, что
© Taunk Akanksha, Ray Samrat, P.M. Kornev, 2023
ChatGPT обладает потенциалом глубоко преобразить несколько секторов. Однако этот потенциал сопровождается некоторыми преградами, включая возможность сокращения рабочих мест и этические вопросы. Результаты подчеркивают необходимость целенаправленных программ повышения квалификации рабочей силы и внедрения этических стандартов для использования искусственного интеллекта, особенно в отраслях, которые обрабатывают чувствительную информацию. Кроме того, важным является поощрение программ переподготовки сотрудников и формирование культуры, акцентирующей на постоянном обучении, чтобы эффективно адаптироваться к постоянно меняющемуся ландшафту технологий искусственного интеллекта.
Ключевые слова: ChatGPT, экономические последствия, производительность, динамика рынка, инновации, повышение квалификации, этические критерии.
► Introduction. Since its introduction in late 2022, ChatGPT has significantly transformed the manner in which people identify discussion partners1. It attracted a million subscribers as a sophisticated chatbot more quickly than any other significant online service or technological advancement in recent memory. In contrast to well-known websites like Netflix or Airbnb, ChatGPT has little competition in its industry2. This state-of-the-art language model, created by
1 Thormundsson B. Adoption rate for major milestone internet-of-things services and technology in 2022, in days [Electronic source]. 2023 URL: https://www.statista.com/statistics/1360613/adop-tion-rate-of-major-iot-tech/ (accessed on September 20, 2023)
2 Thormundsson, B. ChatGPT - statistics &
facts [Electronic source]. 2023. URL: https://www.statista.com/topics/10446/chatgpt/#top-
icOverview (accessed on September 20, 2023).
OpenAI, uses deep learning methods to produce writing that is human-like3. It has a variety of uses, including teaching, content production, and customer support. Its incorporation into several industries has the capacity to change the face of the economy. Taking into account the importance of ChatGPT, this study attempts to investigate how it affects employment, productivity, market dynamics, and innovation in the digital age4. As ChatGPT continues to make waves in the online world, this knowledge is essential for academics, entrepreneurs, and governments navigating the changing digital terrain.
This research aims to conduct a complete analysis of the economic impacts associated with ChatGPT technology in the context of the digital era. Research Objective: to evaluate the effect of ChatGPT on productivity and efficiency in industries that have used this technology.
to explore the effects of ChatGPT on workforce skill needs and employment trends.
to investigate ChatGPT's impact on market competitiveness, entry hurdles, and company strategies.
to explore the possibilities for new business models and innovation enabled by ChatGPT technology.
Research Questions: 1. How do ChatGPT integrations effect industry productivity and efficiency?
3 Thormundsson B. How familiar are United States citizens with the use of generative artificial intelligence (AI) in social media in 2023 [Electronic source]. 2023. URL: https://www.statista.com/statis-tics/1368831/familiarity-with-social-media-in-the-united-states/ (accessed on September 20, 2023).
4 Thormundsson B. Adoption rate for major milestone internet-of-things services and technology in 2022, in days [Electronic source]. 2023 URL: https://www.statista.com/statistics/1360613/adop-tion-rate-of-major-iot-tech/ (accessed on September 20, 2023)
2. How has ChatGPT changed work trends and skill requirements?
3. How does ChatGPT affect competitiveness, entry hurdles, and strategic decision-making?
4. How can ChatGPT technology enable innovation and new business models?
The matter under consideration concerns the fast assimilation of ChatGPT technology across diverse sectors, which has the capacity to modify conventional economic dynamics. Because it has the ability to upend conventional employment patterns, market competitiveness, and innovation paradigms, this is an important problem. The time is critical since the rapid adoption of the technology demands a thorough comprehension of its ramifications. The study highlights the need of taking preventative action to lessen any disruptions,
which is consistent with the thesis of technological determinism, which highlights how much technology has an influence on social structures and behavior. Upon realizing this, companies and politicians may modify their approaches to maximize positive outcomes while reducing negative ones.
► Theory. According to Siedyew, the quality and reliability of data may be improved by the implementation of a meticulously planned research design [1]. The major goal is to change the relationship between the dependent and independent variables such that a thorough evaluation of causation can be provided. Different tactics, such as exploratory, explanatory, and descriptive processes, make comprehensive data collection easier.
Exploratory
A descriptive research design is a type of research methodology that systematically gathers data to characterise a phenomenon circumstance, or population Instead of the why it explicily helps to address the what when place as well how inquines concerning the study problem
Explanatory study uses the little knowledge that is available to investigate why something occurs It can assist you in deepening your grasp of a certain subject figuring out how or why a specific phenomenon is occurnng and making predictions about the future
Exploratory research is a technique strategy that looks at research issues that haven't been thoroughly examined before
Figure 1 - Research Design (Source: Self-Created)
This research will use Descriptive Research Design to investigate "The Economic Effects Of Chatgpt Technology In The Digital Age: Opportunities And Challenges". As Siedlecki points out, the descriptive component aids in the understanding of intrinsic behavioral patterns
[2]. The utilization of technology advancements facilitates the collection of quantitative data efficiently, giving significant advantages for future research [3]. This methodology guarantees expeditious and cost-effective inquiries, resulting in useful insights for academic exploration.
Figure 2 -Sources of Data (Source: Self-Created)
Researchers use a range of methodologies within many fields of study, including as philosophy, human behavior studies, and medical research [4]. Three
primary methodologies, namely pure quantitative, pure qualitative, and combination methods, are often used.
Figure 3 - Data Collection Method (Source: Self-Created)
The investigation titled "The Economic Effects Of ChatGPT Technology In The Digital Age: Opportunities And Challenges" is deemed appropriate for the use of Secondary Quantitative Data because of its capacity to offer a methodical evaluation of critical elements, including perspectives,
attitudes, and experiences. Ruggiano and Perry claim that this method allows for flexibility in the integration of various points of view throughout the debate [5]. The use of quantitative research techniques, which include numerical data, promotes a more thorough and unbiased approach to the
advancement of knowledge. While other methods might be used if considered suitable, it is crucial to recognise that quantitative solutions have limitations concerning data visualisation and financial efficiency [6; 7].
► Materials and Methods. The current study employed the theme analysis technique, which is a vital beginning stage in qualitative analysis owing to its transferable
application across multiple research approaches [6]. According to Braun and Clarke, theme analysis is seen by scholars as a beneficial complement to other qualitative approaches, rather than a substitute [8]. The distinctiveness of theme analysis is well recognized, since it offers the potential for dependable and meaningful conclusions when used in a systematic manner.
Themes
Figure 4 -Thematic analysis (Source: Self-Created)
Despite the constant discussion around the most effective approaches to theme analysis, there is still a lack of agreement on the ideal methodology to be used. However, the analysis of themes continues to be a prominent and well acknowledged methodology in qualitative research [9]. The framework offers researchers a flexible tool for the identification, analysis, and interpretation of patterns and themes within gathered data, facilitating a more profound comprehension of the study topics at hand. The relevance and effect of theme analysis in qualitative research approaches may be enhanced by further study and improvement.
The Random Sampling Approach is used in this study to choose 65 managers from different businesses as a sample. from the sectors Google Forms is used in the process of gathering the data. This strategy successfully reduces bias and improves the representativeness of the sample by using a method that ensures an equal chance of selection for each manager in the population [1]. Eight closed-ended questions will make up the survey, which is intended to collect quantitative information on the goals of the study.
Figure 5 - Random Sampling Approach (Source: Self-Created)
Survey using Google Forms
Standardized Responses
Minimizes Uias
Statistical Analysis Feasibility
Kqual Chance of Selection
Convenient for Respondents
Random Sampling Approach
The use of Google Forms facilitates a more efficient data collection process, offering benefits to both the researcher and the respondents. The use of digital platforms ensures the consistent collection of data and efficient dissemination of surveys. The automated collection and organisation of answers facilitates efficient data management and enables uncomplicated data analysis.
Furthermore, the use of closed-ended questions in the survey aligns with its objective of gathering quantitative data. The use of a structured and measurable approach in this format facilitates the application of statistical analysis, leading to the derivation of meaningful findings pertaining to the impact of ChatGPT technology on the economy in the digital era.
To verify that the selected data sources corresponded with the study's aim, the researcher used certain criteria such as Relevance, Contextual Appropriateness, Quality, Methodological Rigor, Representativeness, Availability,
Completeness, Temporal Relevance, Ethical Considerations. This method enabled a focused and thorough analysis of the chosen data, guaranteeing its eligibility for
answering the study objectives. The study aims to generate significant insights and contribute to a comprehensive analysis of the selected research field by carefully choosing and evaluating secondary qualitative material.
The researcher gave ethical concerns top priority while choosing and evaluating secondary qualitative data to make sure the collected material was used with decency and appropriateness [10]. It was underlined that maintaining data confidentiality and defending intellectual property rights required getting the appropriate consent and authorization from the original data creators or owners.
The investigators evaluated how well the secondary quantitative data aligned with the initial study goals and moral precepts. From the original study, informed permission and ethical review protocols were followed throughout data gathering.
Three main themes emerged from the thematic analysis: beneficence, justice, and respect. In order to ensure the integrity of interpretation and avoid any prior biases, the researcher used a strict and objective methodology. The results were presented in an honest and truthful manner. Ethical problem-solving required adherence to the
Data Protection Act of 20181. This meticulous methodology preserved the integrity of secondary qualitative data ► Results.
analysis, supporting ethical and significant research while respecting the participants' rights and dignity.
1. Do you believe ChatGPT technology has the potential to significantly impact productivity in various industries?
65 responses
^^^^^^^ • Yes
^^^^^^^^ • NO
There is complete agreement (100%) on ChatGPT's ability to dramatically improve productivity across sectors, indicating a high consensus on its transformational qualities. This degree of agreement demonstrates the broad acknowledgment of ChatGPT's ability to revolutionise a variety of industries.
2. Are you concerned about potential job displacement due to the integration of ChatGPT technology in industries?
65 responses
ChatGPT integration raised 78.4% of respondents' concerns about job loss. This shows that the questioned populace is concerned about industry employment. Most are "Very Concerned" or "Somewhat Concerned" about ChatGPT technology's possible labour market effects. The lack of "Not Very Concerned" or "Not Concerned at All" responders suggests a significant agreement on the need of solving this problem.
1 Data Protection Act 2018 (23rd May 2018) [Electronic source] // Legislation.gov.uk. The National Archives. URL: https://www. legislation. gov.uk/ukpga/2018/12/contents/enacted
3. Do you think there should be ethical guidelines in place for the application of artificial intelligence, especially in sensitive sectors like healthcare and finance?
65 responses
9 Strongly Agree 0 Agree
# Neutral 9 Disagree
# Strongly Disagree
A majority (53.8%) of respondents support ethical AI norms in sensitive industries like healthcare and finance. This shows that most respondents think that AI ethics are important. The lack of "Disagree" or "Strongly Disagree" responses shows a consensus on essential industry ethics. The tiny "Neutral" proportion shows low uncertainty or a need for further information. The results emphasise the need of ethical norms in responsible AI technology usage.
This finding implies that there is a general understanding of ChatGPT's potential influence and importance across a range of businesses, which justifies the provision of an organised framework by authorities. Overall, the results highlight how important it is for governmental and regulatory organisations to influence the proper use of ChatGPT technology.
This implies the possibility of future expansion and acceptance of these technologies. In general, the findings underscore a widespread recognition and willingness to use AI-driven technologies for the purpose of enhancing productivity.
6. In your opinion, what is the most significant opportunity offered by ChatGPT technology in the digital age?
65 responses
This response distribution shows a sophisticated awareness of the many advantages that ChatGPT technology may provide to various company activities. The focus on customer service emphasizes how crucial it is to provide effective and efficient service in the digital era.
The significance placed on customer service underscores the impact of technology in augmenting client experiences and contentment across diverse industries.
8. On a scale of 1 to 5, do you recommend ChatGPT technology for industry revolution?
65 responses
0 5 10 15 20 25
These findings show that, although the technology's promise is seen, there are still areas that may need refining or future development. Overall, the comments show a readiness to embrace ChatGPT as a revolutionary tool in a variety of sectors, with space for development and improvement
Several major conclusions are presented in the research on the economic implications of ChatGPT technology in the digital age. To begin, ChatGPT has the ability to greatly increase productivity across
sectors by automating processes that were previously handled by people. ChatGPT, for example, can manage a high number of questions in customer service, lowering
response times and freeing up human agents for more complicated problems.
However, there is a serious worry about possible job relocation. While ChatGPT might help to optimise processes, there is a danger of job loss, especially in professions that need regular work. ChatGPT, for example, might possibly replace human workers in data input and rudimentary customer service, posing workforce adaption issues.
Furthermore, ethical issues for data privacy and protection are critical. The paper found that the need of strong safeguards to guarantee responsible implementation. In healthcare, for example, when sensitive patient information is involved, the ethical usage of ChatGPT becomes critical to maintaining patient confidence and regulatory compliance.
Zendesk's "Answer Bot" uses artificial intelligence (AI), including ChatGPT-like natural language processing, to provide automatic answers to user questions [11]. Businesses may greatly increase response times and free up support professionals to handle more complicated problems by automating regular assistance operations.
The popular video conference tool Zoom uses artificial intelligence (AI) to
translate spoken words into text [12]. In the end, this feature improves productivity and cooperation by making meetings more accessible and allowing participants to have written records of them.
A lot of e-commerce systems, like WooCommerce and Shopify, use chatbots that are driven by AI language models [13]. These chatbots let users locate goods, get answers to questions, and even place purchases. This simplifies the purchasing procedure and improves the whole shopping experience.
AI-powered technologies are used by online legal services provider LegalZoom to help clients create legal documents [14]. These tools make the process of preparing legal forms faster and more accessible for those who need legal aid by using natural language processing to lead users through the process.
Moreover, ChatGPT-enabled virtual assistants are used by organizations such as Babylon Health in the healthcare industry to provide first medical advice and help with appointment scheduling [15]. Due to the significant improvement in patient contact efficiency, medical staff are now able to devote more time to vital medical activities.
ChatGPT Impact
Negative
No Impact
Full Impact
Positive
Partial Impact
Figure 6 - A framework to see the Impact of ChatGPT on Labor Market [16]
The advent of ChatGPT technology is radically altering the dynamics of the workforce. According to Oschinski, the integration of artificial intelligence technologies such as ChatGPT necessitates a
reassessment of the talents that are highly valued in the labour market [17]. The increasing automation of mundane work highlights the need for skills that
complement artificial intelligence, such as critical thinking and creativity.
The use of ChatGPT-powered chatbots has significantly transformed the responsibilities within the domain of customer support. The increasing need for individuals skilled in complex consumer interactions that need human judgement is evident as repetitive operations are becoming automated [18].
Proficiency in the interpretation of AI-generated insights is of utmost importance in data-driven domains such as market research. Persistent concerns around job displacement highlight the need for continuous skill development. Policymakers and enterprises need to allocate resources towards the implementation of training programmes that effectively prepare people for the demands of an AI-driven labour market.
The incorporation of ChatGPT into several sectors has resulted in notable transformations in market rivalry, hurdles to entry, and corporate strategy. Esteemed scholars in the field, it is posited that sophisticated artificial intelligence (AI) technologies, such as ChatGPT, can augment market concentration by endowing prominent corporations with a significant technical edge [19]. The aforementioned benefit may present obstacles for smaller enterprises that are deficient in the necessary resources to embrace and execute these technologies.
In the domain of customer care, firms have achieved a competitive advantage by using chatbots powered by ChatGPT, which enables them to provide effective and 24/7 help [20]. This characteristic distinguishes them from rivals who only depend on human customer support professionals. The capacity to provide immediate replies and rapidly address inquiries contributes to heightened consumer satisfaction, eventually impacting market competitiveness.
Moreover, the use of ChatGPT has the potential to impact organisational initiatives. Companies that successfully use artificial intelligence (AI) technology have the potential to redirect their attention towards more valuable jobs and services. This capability allows companies to distinguish themselves in the market and perhaps demand higher rates for their products or services. In the context of content production, organisations who use ChatGPT to generate preliminary content draughts can commit additional resources towards the enhancement and tailoring of the material to cater to the unique requirements of their clients.
Nevertheless, apprehensions arise over possible monopolistic inclinations, given that bigger corporations, equipped with substantial resources, may possess a superior ability to invest in and exploit cutting-edge AI technology. This phenomenon has the potential to result in market concentration and heightened obstacles for smaller enterprises seeking access. Ensuring equitable competition and mitigating the excessive consolidation of market influence are imperative objectives for regulatory systems.
Furthermore, it is essential for firms to thoroughly deliberate about the ethical and social ramifications associated with the use of ChatGPT. The maintenance of customer trust and commercial competitiveness relies heavily on the need of ensuring transparency and mitigating biases in AI-generated information. OpenAI's principles prioritise the significance of responsible use of AI and the avoidance of information that has the potential to be detrimental or deceptive [20].
The advent of ChatGPT technology has brought forth a surge of inventive business models and prospects for revolutionary innovation. Chowdhury posits that open innovation serves as a facilitator, enabling enterprises to engage in collaborative
endeavours with external stakeholders such as partners and consumers, therefore jointly generating value [21]. For example, businesses have the ability to use ChatGPT in order to create interactive virtual assistants that improve client engagement and provide exceptionally tailored experiences.
Additionally, ChatGPT facilitates the development of subscription-based services that provide users with the ability to access enhanced language generating capabilities on demand [22]. The aforementioned strategy has been effectively implemented by platforms such as ChatGPT Plus, providing more features and advantages in exchange for a recurring monthly payment. These new business models have the dual benefit of generating consistent income streams and enabling unparalleled levels of client engagement and personalised service.
Moreover, the advancement of ChatGPT technology is facilitating the rise of AI-powered content generation services, which may be used across diverse sectors such as marketing, journalism, and entertainment [23]. Media businesses have the potential to use ChatGPT in order to automate the creation of news stories or marketing materials, hence optimising the efficiency of content production workflows [23].
Moreover, inside businesses that have comprehensive documentation and reports, ChatGPT has the potential to substantially diminish the time and exertion required for producing written material. One potential use
of ChatGPT is its utilisation by legal companies for the purpose of generating preliminary draughts of contracts and legal documents. This enables attorneys to allocate their attention towards intricate legal analysis tasks.
The results underscore several significant consequences for policy and practise. Initially, it is imperative to address the urgent need for focused workforce development initiatives aimed at providing workers with the necessary skills demanded in a landscape driven by artificial intelligence. This encompasses the cultivation of critical thinking, creativity, and adaptability. Furthermore, governments need to prioritise the establishment of ethical frameworks for the deployment of artificial intelligence (AI), with specific attention given to sensitive domains such as healthcare and finance. Ensuring a harmonious equilibrium between fostering innovation and protecting consumer interests is of utmost importance. Furthermore, it is essential for industries that primarily depend on repetitive jobs to aggressively investigate strategies for retraining and reallocating their human resources into more valuable endeavours. In conclusion, the cultivation of a culture that prioritises ongoing education and the development of new skills will play a crucial role in guaranteeing a workforce that is robust and capable of adapting to the ever-changing landscape of technological progress.
Table 1 - Strengths And Limitations of The Study (Source: Self-Created)
Strengths Limitations
In-depth analysis of ChatGPT Limited sample size may affect generalizability
Incorporates scholarly viewpoints Potential bias in data collection
Comprehensive coverage of impacts Rapidly evolving technology may impact relevance
Real-world examples provided Reliance on existing literature may limit novelty
Ethical considerations addressed Potential challenges in measuring long-term effects
► Conclusions and Discussion. The
research's findings indicate that ChatGPT has significant potential to bring about profound changes in many sectors, employment patterns, and market dynamics. The pursuit of increased productivity and efficiency raises important considerations about potential job displacement and ethical implications. Policy initiatives should prioritise the enhancement of worker skills and the promotion of appropriate use of artificial intelligence.
Recommendations:
1. Design and implement
comprehensive worker upskilling initiatives aimed at cultivating critical thinking and fostering innovation.
► References
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2. Siedlecki S. L. (2020). Understanding descriptive research designs and methods. Clinical Nurse Specialist, 34(1), 8-12.
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2. This paper aims to propose the establishment of ethical criteria for the application of artificial intelligence (AI), with a particular focus on sensitive industries.
3. Promote the implementation of staff retraining programmes within industries to facilitate the transition of workers towards more sophisticated and valuable job roles.
4. Encourage the development of a culture that fosters ongoing learning in order to effectively adapt to the ever-changing landscape of artificial intelligence technologies.
5. It is important to constantly evaluate and revise policies in order to ensure their congruence with technological progress.
► Литература
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4. Husband G. Ethical data collection and recognizing the impact of semi-structured interviews on research respondents // Education Sciences. 2020. Vol. 10(8). P. 206.
5. Ruggiano N., Perry T. E. Conducting secondary analysis of qualitative data: Should we, can we, and how? // Qualitative Social Work. 2019. Vol. 18(1). P. 81-97.
6. Lochmiller C. R. Conducting thematic analysis with qualitative data // The Qualitative Report. 2021. Vol. 26(6). P. 2029-2044.
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8. Braun V., Clarke V. Reflecting on reflexive thematic analysis // Qualitative research in sport, exercise and health. 2019. Vol. 11(4). P. 589-597.
9. Peel K. L. (2020). A beginner's guide to applied educational research using thematic analysis. Practical Assessment, Research, and Evaluation, Vol. 25(1), 2.
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21. Chowdhury N. A. Unlocking the Power of Chat GPT: An In-Depth Look at ChatAI's Business Model. 2023. DOI: 10.5281/ze-nodo.7655819
22. Arman M., Lamiya U. R. ChatGPT, a Product of AI, and its Influences in the Business World // Talaa: Journal of Islamic Finance. 2023. Vol. 3(1). P. 18-37.
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Статья поступила в редакцию 23.10.23
