Honors Projects

Abstract

How has AI diffusion impacted the power and success of existing countries and corporations? This paper analyzes how these entities have invested their resources into expanding their AI presence, and how it has affected their role in their established spheres. For countries, it is examined how the amount of AI publications they create affects their means of using power, along with how efficient their governments have become. For corporations, it is examined how their capital expenditures (of which AI is becoming increasingly tied to) affects their stock price and annual revenue. Conflicting results are found. Countries tend to exhibit behavior that conflicts with the hypotheses, and corporations tend to exhibit a strong relationship. When controlled for before and after the introduction of ChatGPT, which caused a massive paradigm shift in the world of AI, the effects tend to be more pronounced for the companies analyzed. This means that it tends to be far easier for companies to integrate AI into their structure, whereas countries need to overcome many obstacles to get to a similar result.

Department

Honors Program

Major

Business, General/Individualized

Second Major

Political Science

First Advisor

Stefan Fritsch

First Advisor Department

Political Science

Second Advisor

Michael Slates

Second Advisor Department

Finance

Publication Date

Spring 4-24-2026

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