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The impact of artificial intelligence on labor productivity

Author

Listed:
  • Giacomo Damioli

    (Joint Research Centre (JRC))

  • Vincent Van Roy

    (Joint Research Centre (JRC))

  • Daniel Vertesy

    (International Telecommunication Union
    UNU-MERIT)

Abstract

Recent evidence indicates an upsurge in artificial intelligence and robotics (AI) patenting activities in the latest years, suggesting that solutions based on AI technologies might have started to exert an effect on the economy. We test this hypothesis using a worldwide sample of 5257 companies having filed at least a patent related to the field of AI between 2000 and 2016. Our analysis shows that, once controlling for other patenting activities, AI patent applications generate an extra-positive effect on companies’ labor productivity. The effect concentrates on SMEs and services industries, suggesting that the ability to quickly readjust and introduce AI-based applications in the production process is an important determinant of the impact of AI observed to date.

Suggested Citation

  • Giacomo Damioli & Vincent Van Roy & Daniel Vertesy, 2021. "The impact of artificial intelligence on labor productivity," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 1-25, March.
    • Handle: RePEc:spr:eurasi:v:11:y:2021:i:1:d:10.1007_s40821-020-00172-8
    DOI: 10.1007/s40821-020-00172-8
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    More about this item

    Keywords

    Artificial intelligence; Patents; Labor productivity; GMM-SYS;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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