Please join Tania Babina, Assistant Professor of Finance at Columbia University, and Russ Wermers, Dean’s Chair in Finance, Robert H. Smith School of Business & Director, Center for Financial Policy as they discuss the positive effects of artificial intelligence (AI) on firms.
Which firms invest in artificial intelligence (AI) technologies, and how do these investments affect individual firms and industries? Firms that invest in AI experience faster growth in both sales and employment, which translates into analogous growth at the industry level. The positive effects are concentrated among the ex-ante largest firms, leading to a positive correlation between AI investments and an increase in industry concentration.
Babina’s findings support the view that new technologies, such as AI, increase the scale of the most productive firms and contribute to the rise of superstar firms.
Registration note: Please enter Paul Winter/CFP when asked for UBS contact.