The Role of Firm AI Capabilities in Generative AI-pair Coding

Jacques Bughin

No 2024-076, Working Papers TIMES² from ULB -- Universite Libre de Bruxelles

Abstract: Generative Artificial Intelligence (genAI) is the latest evidence of the transformative value of AI in organizations. One promising avenue lies in software engineering, where genAI can contribute to coding by pairing with developers. Based on a sample of global firms, two main insights emerge on analyzing the productivity implications of genAI-pair coding. Coding quality is negatively correlated with productivity throughput gains, while quality-adjusted productivity gains depend on the extent to which organizations have deployed AI capabilities in the form of data, skills upgrade, and AI governance. As observed with other digital technologies, the success of using genAI is closely tied to complementary technical skills and organizational resources.

Keywords: Generative AI; productivity; enterprise RBV; capabilities; machine learning (search for similar items in EconPapers)
Pages: 38 p.
Date: 2024-09
New Economics Papers: this item is included in nep-ain, nep-eff and nep-tid
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