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Firm Performance on Artificial Intelligence Implementation

Author

Listed:
  • Cheng‐Kui Huang
  • Jheng‐Siang Lin

Abstract

In recent years, artificial intelligence (AI) has become a focal point in academic and business research. With breakthroughs in learning algorithms, AI applications in business operations are increasingly practical and impactful. AI offers tools for market analysis, decision‐making support, and innovations in business models and processes, presenting a significant turning point for firms. Despite this, questions remain about whether AI implementation yields measurable business value or is merely a trend, challenging enterprises and managers. This study provides a significant contribution by empirically examining AI impact on firm‐level performance through three key indicators: financial performance, productivity, and market value. Drawing on internal financial perspectives, this research reveals that while AI adoption enhances financial performance and market value, the advantages for AI first movers and better performers are not uniformly positive across all indicators. This nuanced analysis offers managers and stakeholders a deeper understanding of the tangible value of AI, guiding more informed implementation strategies.

Suggested Citation

  • Cheng‐Kui Huang & Jheng‐Siang Lin, 2025. "Firm Performance on Artificial Intelligence Implementation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(3), pages 1856-1870, April.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:3:p:1856-1870
    DOI: 10.1002/mde.4486
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    References listed on IDEAS

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