Drawing the AI Boundary in Production Networks

Luisa Corrado and Christos A. Makridis

No 13109, CESifo Working Paper Series from CESifo

Abstract: A technology can appear less connected to the economy when its definition expands to include more connected industries. We separate constituent connectivity from exposure crossing the group's boundary and show how internalizing links can reverse rankings. Using 2017 U.S. input–output accounts, we compare artificial intelligence (AI) with matched industry groups. Narrow and broad AI rank above the 96th percentile of internal shares among similarly sized groups, but fall to the 24th and 55th percentiles after also matching sector composition and connectivity. Sector composition accounts for most of the decline, distinguishing AI's industry mix from unusually strong connections among its members.

Keywords: artificial intelligence; production networks; aggregation; input--output accounts (search for similar items in EconPapers)
JEL-codes: C67 D57 E01 L86 O33 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_13109

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