Corporate investment in artificial intelligence: The role of GDP, ICT exports, and patents

Rahman Md. Shanur (), Golder Uttam () and Ghosh Prosenjeet ()
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Rahman Md. Shanur: Department of Finance and Banking Faculty of Business Studies, Jashore University of Science and Technology Jashore, Bangladesh
Golder Uttam: Department of Finance and Banking Faculty of Business Studies, Jashore University of Science and Technology, Jashore, Bangladesh
Ghosh Prosenjeet: Department of Finance and Banking Faculty of Business Studies, Jashore University of Science and Technology Jashore, Bangladesh

Journal of Economics and Management, 2024, vol. 46, issue 1, 613-636

Abstract: Aim/purpose – Despite the widespread use of artificial intelligence (AI) in fields as diverse as finance, healthcare, and education, little is known about the factors motivating its financing. This study investigates the drivers influencing corporate investment in AI using global data from 2013 to 2022, focusing on the relationship between GDP growth, ICT goods exports, AI patent applications (AIPA), and regulatory quality with corporate AI investments. Design/methodology/approach – Descriptive statistics and the ordinary least squares method were employed to analyze aggregated global data, identifying patterns and relationships among the factors influencing corporate AI investment. Findings – The findings reveal a significant positive relationship between GDP growth, ICT goods exports, AIPA, and corporate AI investments. Conversely, the relationship between corporate AI investment and regulatory quality was negative but not statistically significant. Thus, the key findings of our study suggest that economic growth, AI patents, and technological advancements are key drivers of corporate AI investment. Research implications – The study suggests policymakers should prioritize national economic growth, enhance the IT ecosystem by promoting ICT goods exports, and encourage innovation through AI patents. Collaboration with legislators is essential to develop balanced AI regulations that minimize negative impacts on corporate AI financing. By strategically aligning AI investments with favorable economic conditions, businesses can drive sustainable growth, respond to evolving market demands effectively, and secure long-term financial stability. Originality/value/contribution – The existing literature contains information about the current state and the potential of corporate AI investment for the economic development of the world and a specific nation. This study tries to explore the key determinants influencing corporate AI investment to obtain a comprehensive understanding of this industry for economic growth.

Keywords: artificial intelligence; AI; corporate AI investment; GDP; ICT; regulatory quality. (search for similar items in EconPapers)
JEL-codes: F30 F62 F63 F65 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:jecman:v:46:y:2024:i:1:p:24:n:1001

DOI: 10.22367/jem.2024.46.21

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