Your company is contemplating the adoption of general artificial intelligence (genAI) to streamline operations and enhance decision-making processes. Implementing such technologies involves changes in infrastructure, training, and potentially, business models. Considering these factors, What might be the impact of integrating genAI on your company's transaction costs?
1) No significant change in transaction costs, as savings from automation are offset by new expenses related to technology management and compliance with regulations.
2) Significant and sustained increase in transaction costs due to ongoing needs for updating technology, maintaining high levels of cybersecurity, and managing specialized staff and technology partnerships.
3) Increase in short-term transaction costs due to expenses related to technology integration, training for employees, and complex contract negotiations, but potential for long-term cost savings as processes become automated and decision-making is enhanced.