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HEIndividual fellowship2023–2024

AIFocus · The causes and consequences of firms’ focus on artificial intelligence

Horizon Europe — Marie Skłodowska-Curie Actions

Duration
2023-01-01 → 2024-12-31
EU contribution
€203,464
Participants
1
Scheme
HORIZON-TMA-MSCA-PF-EF

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Results in brief

The causes and consequences of firms’ focus on artificial intelligence

Artificial intelligence (AI) has become a pervasive phenomenon with a profound impact on economies, societies, and organizations. Examples include natural language processing, advanced machine learning, and robotic process automation. AI is estimated to contribute to the global economy through productivity gains. More importantly, AI has the potential to solve some of the world’s greatest challenges through innovation. Two core AI capabilities are AI automation and AI information. Firms use AI to increase efficiency through automating their business processes (AI automation). Software tools such as robotic process automation allow firms to automate workers’ repetitive tasks. These technologies rapidly speed up work processes and drive down costs. Firms also try to foster innovation by discovering new information (AI information). While the potential of AI is generally acknowledged, it is not evident that the focus on AI will translate into the targeted economic benefits. There is limited empirical evidence about the firm-level causes and consequences of firms’ increasing focus on AI. The reason for this lack of knowledge is a paucity of firm-level data on AI focus. This project contributes to our understanding of the causes and consequences of AI by collecting and analyzing unique firm-level data. Understanding the causes and consequences of firms’ AI focus is important because it informs policymakers about the role of AI in the economy and can help policymaking concerning AI.

Data: CORDIS, © European Union

Project objective

The European Union (EU) attaches critical importance to AI. With its new strategy, called the “European approach to AI”, the EU aims to boost investment to foster the uptake of AI by EU firms. While the potential of AI is widely acknowledged, it is not evident that the focus on AI will translate into the targeted economic benefits. To date, we lack empirical evidence about the firm-level consequences of firms’ increasing focus on AI. The reason for this lack of knowledge is a paucity of firm-level data.In this project, I contribute to our understanding of the causes and consequences of firms’ increasing focus on AI by using a large firm-level dataset. First, I use automated textual analysis to create a unique measure that captures firms’ focus on AI. The measure is based on publicly available documents and allows separating between different AI capabilities. Second, I investigate what causes firms to focus on AI. The answer to this question will be of critical importance to policymakers. It helps them to use the most effective mechanisms to increase AI uptake. Third, I investigate the effect of firms’ AI focus on (a) efficiency, (b) innovation, and (c) employment. Understanding the consequences of firms’ increasing focus on AI is crucial for policymakers. The findings of this project guide them in making efficient investments and designing policies that benefit the workforce.

Original text from CORDIS.

Participants

  • UNIVERSITEIT MAASTRICHT · MaastrichtCoordinatorNetherlands

Links

Data: CORDIS, © European Union