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Unlocking operational efficiency: How AI human capital investment enhances data processing efficiency?

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  • Liu, Yongda
  • Zhang, Zhuang

Abstract

This study examines the impact of firms' investment in artificial intelligence (AI) human capital on their data processing efficiency. Using the proportion of AI-related employees as a measure of AI human capital investment for US firms from 2005 to 2020, the findings reveal that higher levels of AI human capital significantly reduce the time that firms require to announce their earnings. However, AI tends to be more effective in assisting firms with the processing of routine rather than complex information. Additionally, beyond enhancing the speed of data processing, AI also contributes to greater accuracy in firms' data compilation and disclosure.

Suggested Citation

  • Liu, Yongda & Zhang, Zhuang, 2025. "Unlocking operational efficiency: How AI human capital investment enhances data processing efficiency?," Economics Letters, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176524006311
    DOI: 10.1016/j.econlet.2024.112147
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    References listed on IDEAS

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    Cited by:

    1. Kazakis, Pantelis, 2025. "Conditional Gains: When AI Investment Enhances Firm Efficiency," MPRA Paper 124246, University Library of Munich, Germany.

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    More about this item

    Keywords

    Artificial intelligence; Operational efficiency; Financial reporting; Human capital investment;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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