- Published
- 2023-11-23
- Venue
- Journal of Financial Economics, vol. 151, pp. 103745
- Cited by
- 1,433
- Open access
- Yes, hybrid
- DOI
- 10.1016/j.jfineco.2023.103745
Abstract
We study the use and economic impact of AI technologies. We propose a new measure of firm-level AI investments using employee resumes. Our measure reveals a stark increase in AI investments across sectors. AI-investing firms experience higher growth in sales, employment, and market valuations. This growth comes primarily through increased product innovation. Our results are robust to instrumenting AI investments using firms' exposure to universities' supply of AI graduates. AI-powered growth concentrates among larger firms and is associated with higher industry concentration. Our results highlight that new technologies like AI can contribute to growth and superstar firms through product innovation.
Cite this paper
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- APA 7
Babina, T., Fedyk, A., He, A. X., & Hodson, J. (2023). Artificial intelligence, firm growth, and product innovation. Journal of Financial Economics, 151, 103745. https://doi.org/10.1016/j.jfineco.2023.103745
- MLA 9
Babina, Tania, et al. "Artificial intelligence, firm growth, and product innovation." Journal of Financial Economics, vol. 151, 2023, pp. 103745, https://doi.org/10.1016/j.jfineco.2023.103745.
- Chicago
Babina, Tania, Anastassia Fedyk, Alex Xi He, and James Hodson. "Artificial intelligence, firm growth, and product innovation." Journal of Financial Economics 151 (2023): 103745. https://doi.org/10.1016/j.jfineco.2023.103745.
- GOST
Babina T., Fedyk A., He A. X. [и др.] Artificial intelligence, firm growth, and product innovation // Journal of Financial Economics. — 2023. — Vol. 151. — P. 103745. — URL: https://doi.org/10.1016/j.jfineco.2023.103745
- BibTeX
@article{babina2023artificial, title = {{Artificial intelligence, firm growth, and product innovation}}, author = {Tania Babina and Anastassia Fedyk and Alex Xi He and James Hodson}, journal = {Journal of Financial Economics}, year = {2023}, volume = {151}, pages = {103745}, doi = {10.1016/j.jfineco.2023.103745}, url = {https://doi.org/10.1016/j.jfineco.2023.103745} }- RIS
TY - JOUR AU - Babina, Tania AU - Fedyk, Anastassia AU - He, Alex Xi AU - Hodson, James TI - Artificial intelligence, firm growth, and product innovation JO - Journal of Financial Economics VL - 151 SP - 103745 PY - 2023 DA - 2023/11/23 DO - 10.1016/j.jfineco.2023.103745 UR - https://doi.org/10.1016/j.jfineco.2023.103745 ER -