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Canaries in the Gold Mine: Early Productivity Gains from Artificial Intelligence Creating Organization Capital

Author

Listed:
  • Babina, Tania
  • He, Alex
  • Jiang, Renhao

Abstract

Using a new firm-level measure of AI investment based on AI-skilled employment---spanning machine learning through generative and agentic AI---we show that AI investments are associated with productivity growth in recent years, but not over the previous decade. We trace the productivity gains to the accumulation of organization capital that AI helps create: durable firm-specific knowledge acquired through learning-by-doing that enables more efficient production. We build a novel measure of organization capital based on workers' job descriptions and document that productivity gains are driven by AI-skilled jobs that build organization capital. Overall, our findings suggest that AI investment generates productivity growth by creating organization capital.

Suggested Citation

  • Babina, Tania & He, Alex & Jiang, Renhao, 2026. "Canaries in the Gold Mine: Early Productivity Gains from Artificial Intelligence Creating Organization Capital," CEPR Discussion Papers 21894, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:21894
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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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