Foundational Models as General-Purpose Technology: A Guide to Corporate Transformation

The emergence of foundational models (FMs), including large language models (LLMs), and generative AI marks a transformative era in technology, comparable to the impact of historical general-purpose technologies (GPTs) like electricity and the steam engine. This paper explores the essential conditions and policy frameworks that companies must adopt to effectively leverage these powerful tools. FMs are distinguished by their broad applicability across diverse sectors, driving innovation and efficiency. LLMs, a subset of FMs, excel in natural language processing and content generation, revolutionizing communication and information dissemination. To successfully integrate these technologies, organizations must prioritize strategic investments in research and development, enhance their data infrastructure, and foster a culture of continuous learning. Additionally, robust regulatory frameworks are crucial to address ethical considerations and ensure equitable access to these transformative tools. By understanding the historical context of GPTs and implementing supportive policies, companies can position themselves at the forefront of technological advancement, driving economic growth and societal progress.