Show Me Your Effort: Asymmetric Evaluations of Generative AI by Consumers and Creators
Prof. Kun CHEN
Professor, School of Management, Shenzhen University, China
Date: 27 September 2024 (Friday)
Time: 14:30 to 16:00
Venue: E22-G008
Host: Prof. Jacky Yan LIN, Assistant Professor in Business Intelligence and Analytics
Abstract
The emergence of generative AI has significantly impacted the creative industry by producing content that rivals human-created works in quality. However, the economic effects of generative AI on the trading of creative products remain unclear. This study analyzes trading data from an NFT market and finds that generative AI reduces the trading efficiency of digital artworks, as evidenced by lower trade prices and wider bid-ask spreads, particularly when AI involvement is not explicitly labeled. To explore the underlying mechanisms further, we conducted three experiments. The results reveal that consumers value AI-generated artworks less than human-created ones of the same content. This difference in valuation stems from the belief that human-created artworks require greater effort and embody a special essence from the creator, making them more authentically valuable. Conversely, from a creator’s perspective, human-created artworks are perceived as less valuable than AI-generated ones, demonstrating a value asymmetry between creators and consumers. Our findings suggest that creators should explicitly label AI involvement and provide explanations about the creation process to consumers.
Speaker
Kun CHEN is a professor at the School of Management, Shenzhen University. She earned her Ph.D. from City University of Hong Kong. Her research primarily focuses on AI, Fintech, and Web 3.0. She has published papers in UTD/FT journals such as Information Systems Research, INFORMS Journal on Computing, and Journal of Management Information Systems, among others.
All are welcome!
