Looking in the rear‐view mirror: Evidence from artificial intelligence investment, labour market conditions and firm growth-Reference-Cited by-同舟云学术

Looking in the rear‐view mirror: Evidence from artificial intelligence investment, labour market conditions and firm growth

Published:2024-02-26 Issue: Volume: Page:
ISSN:1076-9307
Container-title:International Journal of Finance & Economics
language:en
Short-container-title:Int. J Fin Econ

Author:

Tingbani Ishmael¹^ORCID,Salia Samuel²^ORCID,Hartwell Christopher A.³,Yahaya Alhassan⁴^ORCID

Affiliation:

1. Department of Accounting, Southampton Business School University of Southampton Southampton UK

2. Birmingham City Business School Birmingham City University Birmingham UK

3. International Management Institute Department of International Business Zurich University of Applied Sciences Winterthur Switzerland

4. Department of Accounting and Finance Sunderland University London UK

Abstract

AbstractThis paper presents evidence of the impact of AI investment on firm growth and how the relationship is sensitive to labour market conditions. Using the generalized method of moments (GMM) estimation on 1950 unique American firms over 1996–2016, we show that a 10% increase in AI investment leads to an increase in firm growth by 0.04%. However, this result is highly sensitive to labour market conditions, as labour productivity can positively impact firm growth, but labour cost and labour share negatively influence firm growth. These results offer original insights into an essential channel via which investment in AI may mediate firm growth.

Publisher

Wiley

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1002/ijfe.2945

Reference114 articles.

1. Aberdeen Group. (2020).Multichannel vs. Omnichannel Communications ‐ Liquid State.https://liquid-state.com/multichannel-vs-omnichannel-communications/

2. Skills, Tasks and Technologies: Implications for Employment and Earnings

3. Return of the Solow Paradox? IT, Productivity, and Employment in US Manufacturing

4. A Theory of Falling Growth and Rising Rents

5. Artificial Intelligence and Economic Growth