Corporate Responses to Generative AI: Early Evidence from Conference Calls

54 Pages Posted: 22 Mar 2024

See all articles by Ning Jia

Ning Jia

Tsinghua University - School of Economics & Management

Ningzhong Li

University of Texas at Dallas

Guang Ma

Rutgers Business School at Newark and New Brunswick

Da Xu

Tsinghua University, School of Economics and Management

Date Written: February 23, 2024

Abstract

We provide early evidence of generative artificial intelligence (GAI)’s potential impact on corporations through managerial discussions of GAI in conference calls after the release of ChatGPT in November 2022. Following the release, managerial discussions of GAI in conference calls increase substantially, and the increase is more pronounced for firms with greater innovation intensity, cybersecurity threats, product differentiation, labor exposure to AI, and customer operations, suggesting that these firms are more likely to be affected by GAI. Managers tend to believe that GAI is more beneficial to firms with greater innovation intensity and cybersecurity threats but is more detrimental to firms with greater product differentiation. While they hold mixed views on GAI’s impact on firms with greater labor exposure to AI and customer operations, their views are more likely to be positive than negative. Managers of firms with greater innovation intensity, cybersecurity threats and customer operations (product differentiation) increase initiative-related (non-initiative-related) discussions more. While managers of firms with greater labor exposure to AI increase discussions of both types more, they are more likely to increase initiative-related discussions. Overall, our study sheds light on the heterogeneous corporate perceptions of GAI’s impacts and responses.

Keywords: generative AI, ChatGPT, conference call, innovation, cybersecurity, product differentiation, labor exposure to AI, customer operations

JEL Classification: K4, M4

Suggested Citation

Jia, Ning and Li, Ningzhong and Ma, Guang and Xu, Da, Corporate Responses to Generative AI: Early Evidence from Conference Calls (February 23, 2024). Available at SSRN: https://ssrn.com/abstract=4736295 or http://dx.doi.org/10.2139/ssrn.4736295

Ning Jia

Tsinghua University - School of Economics & Management ( email )

Beijing, 100084
China

Ningzhong Li

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

Guang Ma

Rutgers Business School at Newark and New Brunswick ( email )

1 Washington Park
Newark, NJ 07102
United States
(848) 445-4765 (Phone)

Da Xu (Contact Author)

Tsinghua University, School of Economics and Management ( email )

Haidian District, Beijing, China
Beijing, Beijing 100084
China

HOME PAGE: http://www.da-xu.com/

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