AI Adoption and Firm Performance: Management versus IT

40 Pages Posted: 14 Sep 2020

See all articles by Liudmila Alekseeva

Liudmila Alekseeva

University of Navarra, IESE Business School

Mireia Gine

IESE Business School, University of Navarra ; The University of Pennsylvania

Sampsa Samila

University of Navarra, IESE Business School

Bledi Taska

Burning Glass Technologies

Date Written: July 21, 2020

Abstract

We examine the impact of AI adoption on firm growth, productivity, and investment decisions and explore whether the impact on firm size and policies stems from AI adoption among management ranks or IT specialists. We measure the firm-level AI adoption using the demand for AI-related skills in online job postings. First, we document a positive association between the firm-level AI adoption and the firm's size, Capex, R&D, and total investments. We do not find robust relationships with productivity measures. Second, we find that the adoption of AI skills among managers drives the positive association with growth in sales and market capitalization, as well as with R&D and Capex. AI adoption among IT specialists does not show any robust association with firm outcomes.

Keywords: artificial intelligence, machine learning, productivity, technology adoption, management

JEL Classification: D22, D24, G31, G32, J24, M15, M2, O33

Suggested Citation

Alekseeva, Liudmila and Gine, Mireia and Samila, Sampsa and Taska, Bledi, AI Adoption and Firm Performance: Management versus IT (July 21, 2020). Available at SSRN: https://ssrn.com/abstract=3677237 or http://dx.doi.org/10.2139/ssrn.3677237

Liudmila Alekseeva

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Mireia Gine (Contact Author)

IESE Business School, University of Navarra ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

The University of Pennsylvania ( email )

Philadelphia, PA 19104
United States

Sampsa Samila

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Bledi Taska

Burning Glass Technologies ( email )

One Lewis Wharf
Boston, MA 02110
United States

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