AI-Driven Productivity Gains: Artificial Intelligence and Firm Productivity

Artificial intelligence is profoundly influencing various facets of our lives, indicating its potential to significantly impact sustainability. Nevertheless, capturing the productivity gains stemming from artificial in macro-level data poses challenges, leading question whether reminiscent “Solow paradox”. This study employs micro-level manufacturing investigate on firms’ productivity. The finds that every 1% increase penetration can lead a 14.2% total factor conclusion remains robust even after conducting endogeneity analysis and series robustness tests. identifies positive primarily achieved through value-added enhancement effect, skill-biased technology upgrading effect. Furthermore, reveals effects vary across different property rights industry concentration contexts. Additionally, structure endowments within firms also influence intelligence. Our presents compelling evidence demonstrating role fostering economic sustainability framework Industry 4.0.