AI Adviser in Kenya Boosts Strong Entrepreneurs, Hurts Weak Ones

Researchers from UC Berkeley, Harvard, and Columbia conducted a six-month study in Kenya, providing small business owners with access to a GPT-4-powered AI adviser via WhatsApp. The results revealed that the most successful entrepreneurs—those who had previously excelled—experienced a profit increase of about 15% compared to their counterparts who did not receive AI support. In contrast, business owners facing significant revenue challenges prior to the study saw their profits decline by nearly 10%, indicating that AI may have had detrimental effects for them. These findings underscore a potential drawback of AI in business, suggesting that such tools could deepen existing inequalities instead of creating a more equitable environment.