The role of human capital for AI adoption: Evidence from French firms

Luca Fontanelli (), Flavio Calvino, Chiara Criscuolo (), Lionel Nesta () and Elena Verdolini
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Luca Fontanelli: GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur, SSSUP - Scuola Universitaria Superiore Sant'Anna = Sant'Anna School of Advanced Studies [Pisa]
Flavio Calvino: OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development
Lionel Nesta: GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur
Elena Verdolini: CMCC - Centro Euro-Mediterraneo per i Cambiamenti Climatici [Bologna]

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Abstract: We leverage a uniquely comprehensive combination of data sources to explore the enabling role of human capital in fostering the adoption of predictive AI systems in French firms. Using a causal estimation approach, we show that ICT engineers play a key role for AI adoption by firms. Our estimates indicate that raising the current average share of ICT engineers in firms not using AI (1.66%) to the level of AI users (6.7%) would increase their probability to adopt AI by 0.81 percentage pointsequivalent to an 8.43 percent growth. However, this would imply substantial investments to fill the existing gap in ICT human capital, amounting to around 450.000 additional ICT engineers. We also explore potential mechanisms, showing that the relevance of ICT engineers for predictive AI is driven by the innovative nature of its use, make-vs-buy choices, large availability of data, ICT and R&D intensity.

Keywords: artificial intelligence; human capital; technological diffusion (search for similar items in EconPapers)
Date: 2024-11
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-05029748v1
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Published in Discussion Paper, 2024, 2055, pp.1-37

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05029748

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