Artificial intelligence and firm-level productivity

Dirk Czarnitzki, Gastón P. Fernández and Christian Rammer

Journal of Economic Behavior & Organization, 2023, vol. 211, issue C, 188-205

Abstract: Artificial Intelligence (AI) is often regarded as the next general-purpose technology with a rapid, penetrating, and far-reaching use over a broad number of industrial sectors. The main feature of new general-purpose technology is to enable new ways of production that may increase productivity. However, to date, only a few studies have investigated the likely productivity effects of AI at the firm-level, presumably due to limited data availability. We exploit unique survey data on firms’ adoption of AI technology and estimate its productivity effects with a sample of German firms. We employ both a cross-sectional dataset and a panel database. To address the potential endogeneity of AI adoption, we also implement IV estimators. We find positive and significant associations between the use of AI and firm productivity. This finding holds for different measures of AI usage, i.e., an indicator variable of AI adoption, and the intensity with which firms use AI methods in their business processes.

Keywords: Artificial Intelligence; Innovation; Productivity; CIS data (search for similar items in EconPapers)
JEL-codes: L25 M15 O14 O31 O33 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Related works:
Working Paper: Artificial Intelligence and Firm-level Productivity (2022)
Working Paper: Artificial intelligence and firm-level productivity (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:211:y:2023:i:c:p:188-205

DOI: 10.1016/j.jebo.2023.05.008

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