Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Business
Explainable Ai Helps Bridge The Ai Skills Gap: Evidence From A Large Bank, Selina Carter, Jonathan Hersh
Explainable Ai Helps Bridge The Ai Skills Gap: Evidence From A Large Bank, Selina Carter, Jonathan Hersh
Economics Faculty Articles and Research
Advances in machine learning have created an “AI skills gap” both across and within firms. As AI becomes embedded in firm processes, it is unknown how this will impact the digital divide between workers with and without AI skills. In this paper we ask whether managers trust AI to predict consequential events, what manager characteristics are associated with increasing trust in AI predictions, and whether explainable AI (XAI) affects users’ trust in AI predictions. Partnering with a large bank, we generated AI predictions for whether a loan will be late in its final disbursement. We embedded these predictions into a …
How Apis Create Growth By Inverting The Firm, Seth G. Benzell, Jonathan Hersh, Marshall Van Alstyne
How Apis Create Growth By Inverting The Firm, Seth G. Benzell, Jonathan Hersh, Marshall Van Alstyne
Economics Faculty Articles and Research
Traditional asset management strategy has emphasized building barriers to entry or closely guarding unique assets to maintain a firm’s comparative advantage. A new “Inverted Firm” paradigm, however, has emerged. Under this strategy, firms share data seeking to become platforms by opening digital services to third-parties and capturing part of their external surplus. This contrasts with a “pipeline” strategy where the firm itself creates value. This paper quantitatively estimates the effect of adopting an inverted firm strategy through the lens of Application Programming Interfaces (APIs), a key enabling technology. Using both public data and that of a private API development firm, …