scispace - formally typeset
Search or ask a question

Does artificial intelligence technology affect the productivity of firms? 

Best insight from top research papers

Artificial intelligence (AI) technology has a positive impact on the productivity of firms. Studies have found that the use of AI is associated with increased firm productivity . This productivity gain is observed across different measures of AI usage, such as AI adoption and the intensity of AI methods in business processes . The impact of AI on productivity is achieved through various mechanisms, including value-added enhancement, skill-biased enhancement, and technology upgrading . Additionally, the positive contribution of AI to firm productivity is evident in the context of green sustainable development, where AI application leads to increased green total factor productivity . Factors such as complementary assets, ICT skills, and the use of other digital technologies also play a critical role in the productivity advantages of AI users . Furthermore, AI innovation benefits from complementaries with earlier innovation in information and communication technology (ICT) and is influenced by firm characteristics and external factors .

Answers from top 4 papers

More filters
Papers (4)Insight
Yes, the use of artificial intelligence (AI) technology is found to affect the productivity of firms, particularly the largest ones, according to the provided paper.
Yes, artificial intelligence technology does affect the productivity of firms. According to the study, a 1% increase in artificial intelligence penetration can lead to a 14.2% increase in total factor productivity.
Yes, the paper states that the application of AI technology positively contributes to the green total factor productivity of enterprises.
Yes, the paper finds that there is a positive and significant association between the use of AI technology and firm productivity.

Related Questions

How has the integration of AI into various industries impacted efficiency and productivity?5 answersThe integration of artificial intelligence (AI) into various industries has significantly impacted efficiency and productivity. AI technologies have led to enhanced efficiency, amplified productivity, and reduced expenses for enterprises, allowing for improved performance across different sectors. Specifically, in manufacturing, AI applications have improved production monitoring, planning, and enabled human intervention and learning, resulting in increased performance on various business and production indicators. However, the introduction of AI may also lead to lower staff levels and impact existing employee morale, emphasizing the importance for organizations to understand both the capabilities and shortcomings of AI for successful integration. Overall, the assimilation of AI has brought about transformative changes in industries, enhancing operational effectiveness and driving productivity improvements.
How has artificial intelligence impacted the productivity and efficiency of various industrial processes?5 answersArtificial intelligence (AI) has significantly enhanced the productivity and efficiency of various industrial processes. By analyzing data, AI algorithms can optimize operations, reduce downtime, and increase production output. In the manufacturing sector, AI has improved efficiency by optimizing processes, reducing waste, and enhancing quality control. Additionally, AI has been instrumental in composite materials manufacturing, offering techniques for predictive maintenance, real-time monitoring, and process parameter optimization, leading to improved productivity and reduced downtime. The integration of AI in edge computing systems has further enhanced data monitoring, analysis, and response initiation, resulting in more accurate and synchronized data processing. Overall, AI's impact on industrial processes spans various sectors, driving economic growth, creating new revenue streams, and transforming industries towards increased competitiveness and innovation.
How AI affects productivity?5 answersArtificial intelligence (AI) has a significant impact on productivity. It has been found that AI tools such as the assistive chatbot ChatGPT can substantially increase productivity in professional writing tasks, reducing the time taken by 40% and improving output quality by 18%. In the healthcare sector, AI facilitates the management of hospitals by assessing employees' productivity and analyzing their characteristics, leading to improved productivity. AI also has a positive effect on firms' productivity in the manufacturing sector, with a 1% increase in AI penetration resulting in a 14.2% increase in total factor productivity. By automating repetitive tasks, AI frees up employees' time to focus on more valuable activities, enhancing efficiency and effectiveness in decision-making. Additionally, the adoption of AI technology by firms has been found to have positive associations with firm productivity.
How does the adoption of AI affect firm performance?4 answersThe adoption of AI has a positive impact on firm performance, leading to increased productivity and value creation. Studies have found that firms using AI technology experience significant associations with higher productivity levels. AI deployment affects firm-level performance by creating or destroying value through stakeholder encounters, with the potential to drive value creation through stakeholder justice. AI adoption in manufacturing has been shown to increase total factor productivity, with a 1% increase in AI penetration leading to a 14.2% increase in productivity. AI adoption is not a standard process innovation but rather a complement to variable inputs, increasing the short-run elasticity of supply and potentially reducing profits for non-adopting firms. Additionally, the implementation of an AI marketing strategy positively affects firm performance, with marketing capabilities, customer value co-creation, and market orientation playing important roles.
How does artificial intelligence (AI) affect productivity?5 answersArtificial intelligence (AI) has a positive impact on productivity. AI technologies such as generative AI chatbots and automation can significantly enhance productivity in various industries. Studies have shown that the use of AI in firms is associated with increased productivity, as it enables new ways of production and improves business processes. In the healthcare sector, AI facilitates the management of hospitals and enhances employee productivity by analyzing their characteristics and promoting knowledge sharing and mental well-being. Additionally, AI can lead to substantial productivity gains in manufacturing, with even a small increase in AI penetration resulting in a significant increase in total factor productivity. Overall, AI has the potential to complement human skills, reduce inequality, and foster economic sustainability by enhancing productivity in various sectors.
What is the impact of Artificial Intelligence on firm value?5 answersArtificial intelligence (AI) has a significant impact on firm value. Studies have found that AI adoption leads to a positive relationship with firm value, as evidenced by empirical findings. Specifically, automation AI has a significant and positive impact on the firm's cost structure. However, the impact of AI investment on firm value is not always positive. In some cases, AI investment announcements have resulted in a decrease in firms' market value. Factors such as nonmanufacturing firms, weak information technology capabilities, and low credit ratings can contribute to a more negative impact on firm value. Overall, the impact of AI on firm value depends on various factors and contexts, highlighting the need for firms to carefully consider their AI strategies and capabilities.

See what other people are reading

How effective are government policies in promoting sustainable development in India?
5 answers
Government policies in India play a crucial role in promoting sustainable development. The National Institute for Transforming India (NITI Aayog) coordinates Sustainable Development Goals (SDGs) implementation, with the Ministry of Rural Development focusing on poverty alleviation. The government emphasizes sustainable practices in manufacturing and market strategies, aligning with global efforts to address challenges like global warming. India's commitment to SDGs is reflected in initiatives like organic agriculture and exemptions for farmers, aiming to uplift the agricultural sector sustainably. However, challenges persist, as sustainable practices are not widely adopted due to the lack of stringent legal frameworks. The government's efforts, while commendable, need to be reinforced with stronger enforcement mechanisms to ensure widespread adherence to sustainable practices for effective promotion of sustainable development in India.
Corporate wellness programs influence employer attractiveness?
5 answers
Corporate wellness programs play a significant role in influencing employer attractiveness. These programs are evolving to encompass various aspects of employees' well-being, including physical, mental, financial, and social health, aiming to enhance productivity and reduce healthcare costs. While some studies question the cost-saving aspect of these programs, they are acknowledged for promoting a healthy workforce, reducing stress, and improving employee lifestyles, ultimately leading to increased productivity. By offering holistic wellness options, employers can create a positive work environment where employees feel empowered to make choices about their well-being, thus contributing to a more attractive workplace. Overall, the implementation of comprehensive wellness programs can enhance employer attractiveness by fostering a culture of care and support for employees' overall health and well-being.
What is the convolutional layer of CNNs?
5 answers
The convolutional layer in Convolutional Neural Networks (CNNs) is a fundamental component responsible for feature extraction through cross-correlation with learnable kernels, aiding in pattern recognition. CNNs utilize convolutional layers to identify spatial patterns efficiently by systematically detecting simple patterns that are then aggregated into complex features through subsequent layers. These layers play a crucial role in image processing tasks like classification, segmentation, and object detection. By applying local connectivity constraints between neurons of adjacent layers, CNNs exploit local spatial correlation, inspired by multi-layer Perceptrons, to extract essential features from unstructured data like images, text, audio, and speech. The convolutional layer's operation involves automated learning of filters to extract features from images effectively, contributing to the robustness and performance of CNNs in various applications.
What are the long-term effects of academic achievement on an individual's career prospects?
5 answers
Academic achievement plays a crucial role in shaping an individual's career prospects. Research suggests that higher academic achievement leads to better career maturity, indicating a bidirectional relationship between academic success and career development. Additionally, academic achievement is linked to improved ethical considerations in research, ultimately enhancing the outcomes of one's career endeavors. Moreover, academic achievement has been found to have a significant impact on individual incomes and employment prospects, highlighting the long-term benefits of higher education attainment on career success. Therefore, investing in academic excellence not only opens up economic opportunities but also contributes to overall career advancement and success in the long run.
How do economic factors influence the adoption and implementation of surface transport policies?
5 answers
Economic factors play a crucial role in shaping the adoption and implementation of surface transport policies. Structural economic changes within a city's economy, such as GDP growth reflecting population and income growth, are key drivers for road transport infrastructure requirements. Market failures, like congestion and road accidents, highlight the need for pricing reforms to hold road users accountable for the costs of their travel choices. Additionally, the unequal distribution of benefits from transport projects can impact public acceptance, with individuals of higher income benefiting more from improvements, potentially leading to regressive effects on welfare distribution. By considering economic influences, policymakers can design policies that enhance urban productivity, address market failures, and ensure equitable distribution of benefits to improve public acceptance and overall effectiveness of surface transport policies.
Who has higher level of media literacy the young people age 20 or the older people?
5 answers
Young people aged 20 generally exhibit higher levels of media literacy compared to older individuals. Research indicates that adolescents and young adults have been the focus of numerous studies assessing media literacy competencies, highlighting sustained investments in this age group by various organizations. Additionally, a study comparing different age groups found that as individuals move from younger to older age groups, there is an increase in critical-controlling media consumption styles, reflecting a higher level of media literacy in older individuals. Furthermore, the younger among the elderly (65 years and older) tend to have a higher level of digital literacy than the older elderly, suggesting a generational difference in media literacy levels.
How can ICT be applied to improve outcomes in the health sector?
4 answers
ICT can be applied in the health sector to enhance outcomes through various means. By leveraging ICT factors like information technologies, Web 2.0, and 3D represented technologies, healthcare services can be accessed more efficiently, especially during situations like lockdowns and physical distancing, as seen during the COVID-19 pandemic. The integration of ICT in healthcare enables the use of AI-based solutions, wearable therapeutic devices, predictive healthcare diagnostics, disease prevention systems, and automated disease screening, ultimately strengthening healthcare systems and improving overall health outcomes. Research also indicates that ICT factors can influence national health outcomes by mediating the impact on indicators like under-five mortality rate and adolescent fertility rate through ICT social impact, showcasing the potential for ICT to drive improvements in public health.
How does the level of unemployment insurance benefit affect regional inequalities in the UK?
4 answers
The level of unemployment insurance benefits can impact regional inequalities in the UK in various ways. Higher unemployment insurance benefits can lead to differences in wage distribution, wealth mobility, and income inequality. Additionally, regional disparities in unemployment rates within the UK can be influenced by factors such as the share of employment in the service sector and the degree of urbanization. These disparities can create clusters of regions with high and low unemployment rates, highlighting the importance of understanding the determinants of regional economic variations. Moreover, regional differences in average earnings across Britain may not fully capture the extent of regional disparities without considering variations in the cost of living and local amenities.
What are the common vulnerabilities assessed in a vulnerability assessment?
4 answers
Common vulnerabilities assessed in a vulnerability assessment encompass a wide range of domains. These include software vulnerabilities arising from weaknesses in software solutions, leading to increased risks of resource and information exploitation. Furthermore, vulnerability assessments extend to industrial facilities susceptible to malicious acts, necessitating the evaluation of security systems to prevent and mitigate potential domino effects triggered by malevolent actions. In the healthcare sector, vulnerable patients undergoing concurrent chemoradiation therapy for head and neck cancer are identified based on their susceptibility to treatment-related adverse effects, impacting treatment tolerance and survival rates. Additionally, the realm of connected and autonomous vehicles (CAVs) faces vulnerabilities to cybersecurity threats, emphasizing the need for advanced assessment methods considering real-world impacts and utilizing Bayesian network models for effective evaluation.
What are Songdo, Korea's efforts to make the city environmentally sustainable?
4 answers
Songdo International Business District (IBD) in Korea is a city known for its ambitious sustainability initiatives. Despite facing challenges like lack of citizen participation, Songdo has been recognized for its innovative energy and water-saving designs, making it one of the greenest and smartest cities globally. Korea's national strategies, such as the Comprehensive National Territorial Plans (CNTPs) and the National Strategy for Green Growth (NSGG), have played a crucial role in promoting sustainable urban development in the country. However, critiques of Songdo's "u-eco-city" model highlight issues like social exclusion and environmental externalities, indicating room for improvement in its sustainability efforts. The city's transition to a smart and green model has been influenced by the discourse of sustainable development and the governance model of smart cities, emphasizing the importance of good urban governance and responsible citizenship.
How does the design of physical learning environments impact student engagement and academic performance?
4 answers
The design of physical learning environments significantly impacts student engagement and academic performance. Research indicates that factors such as classroom environment, teacher competency, ICT resources, university facilities, ambient attributes (e.g., noise, lighting), spatial attributes (e.g., room layout, furniture), and psychosocial-physical relationships play crucial roles. Well-designed learning spaces enhance the overall learning experience, influencing student outcomes and satisfaction levels. Studies emphasize the importance of considering various elements like lighting, acoustics, temperature, and spatial layout to promote active student engagement and improve academic performance. The interplay between physical and psychosocial aspects in learning environments underscores the need for continuous assessment and alignment with pedagogical changes to create effective and innovative spaces for learning.