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Generative AI and Firm Values

Author

Listed:
  • Andrea L. Eisfeldt
  • Gregor Schubert
  • Miao Ben Zhang

Abstract

How do recent advances in Generative AI affect firm value? We construct the first measure of firms’ workforce exposures to Generative AI and show that an “Artificial-Minus-Human” (AMH) portfolio earned 5% in the two weeks following the release of ChatGPT. The labor-exposure effect is more pronounced for firms with greater data assets and is distinct from the effect of firms’ product exposures to AI. We assess whether exposed workforces are substituted or complemented by Generative AI based on whether their exposed tasks are core or supplemental. Examining firms’ labor demand and profitability following the release of ChatGPT supports a labor-technology substitution channel.

Suggested Citation

  • Andrea L. Eisfeldt & Gregor Schubert & Miao Ben Zhang, 2023. "Generative AI and Firm Values," NBER Working Papers 31222, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31222
    Note: AP CF EFG
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    Cited by:

    1. Cheng, Qiang & Lin, Pengkai & Zhao, Yue, 2025. "Does generative AI facilitate investor Trading? Early evidence from ChatGPT outages," Journal of Accounting and Economics, Elsevier, vol. 80(2).
    2. Cantarella, Michele & Molinari, Giuseppe & Strozzi, Chiara, 2026. "Becoming The Man Without Qualities? Deskilling in the Age of Artificial Intelligence," IZA Discussion Papers 18751, IZA Network @ LISER.
    3. Zhu, Xiaoquan & Yang, Yifan & Hua, Huijia, 2026. "ESG disclosure, ESG rating disagreement and firm valuation in China: A pre-registered report," Pacific-Basin Finance Journal, Elsevier, vol. 97(C).
    4. Huseynov, Samir, 2025. "ChatGPT and the labor market: Unraveling the effect of AI discussions on students’ earning expectations," Journal of Economic Psychology, Elsevier, vol. 108(C).
    5. Nicola Borri & Aleh Tsyvinski & Yukun Liu, 2026. "AI Premium," NBER Working Papers 35451, National Bureau of Economic Research, Inc.
    6. Wang, Ping & Wong, Tsz-Nga, 2026. "Artificial intelligence and technological unemployment," Journal of Monetary Economics, Elsevier, vol. 158(C).
    7. Jovanovic, Boyan & Rousseau, Peter L., 2026. "AI and task efficiency," Journal of Monetary Economics, Elsevier, vol. 157(C).
    8. Li, Zheng & Li, Haitong & Dai, Pengyi, 2026. "Artificial intelligence innovation and financial information quality: Evidence from firm patent data," Research in International Business and Finance, Elsevier, vol. 82(C).
    9. Alejandro Lopez-Lira, 2025. "Can Large Language Models Trade? Testing Financial Theories with LLM Agents in Market Simulations," Papers 2504.10789, arXiv.org.
    10. Phurichai Rungcharoenkitkul, 2026. "The AI investment race," BIS Working Papers 1367, Bank for International Settlements.
    11. Wenkai Zhou & Chi Zhang & Linwan Wu & Meghana Shashidhar, 2023. "ChatGPT and marketing: Analyzing public discourse in early Twitter posts," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 693-706, December.
    12. Jiang, Wei & Tang, Yuehua & Xiao, Rachel J. & Yao, Vincent, 2025. "Surviving the fintech disruption," Journal of Financial Economics, Elsevier, vol. 171(C).
    13. Rajaram, Kumaran & Tinguely, Patrick Nicolas, 2024. "Generative artificial intelligence in small and medium enterprises: Navigating its promises and challenges," Business Horizons, Elsevier, vol. 67(5), pages 629-648.
    14. Gramlich, Dieter & Walker, Thomas & Zhang, Aoran & Zhao, Yunfei, 2026. "Do natural disasters affect product development? Evidence from trademarks," International Review of Economics & Finance, Elsevier, vol. 106(C).
    15. Claudia Biancotti & Carolina Camassa, 2023. "Loquacity and visible emotion: ChatGPT as a policy advisor," Questioni di Economia e Finanza (Occasional Papers) 814, Bank of Italy, Economic Research and International Relations Area.
    16. Ozge Demirci & Jonas Hannane & Xinrong Zhu, 2024. "Who Is AI Replacing? The Impact of Generative AI on Online Freelancing Platforms," CESifo Working Paper Series 11276, CESifo.
    17. Freund, Lukas & Mann, Lukas, 2026. "Job Transformation, Specialization, and the Labor Market Effects of AI," IZA Discussion Papers 18565, IZA Network @ LISER.
    18. Sophia Kazinnik & Erik Brynjolfsson, 2025. "AI and the Fed," NBER Working Papers 33998, National Bureau of Economic Research, Inc.
    19. Alex Kim & Maximilian Muhn & Valeri Nikolaev, 2023. "From Transcripts to Insights: Uncovering Corporate Risks Using Generative AI," Papers 2310.17721, arXiv.org, revised Mar 2025.
    20. Leland D. Crane & Paul E. Soto, 2026. "AI and Coder Employment: Compiling the Evidence," Finance and Economics Discussion Series 2026-018, Board of Governors of the Federal Reserve System (U.S.).
    21. Chen, Qin & Ge, Jinfeng & Xie, Huaqing & Xu, Xingcheng & Yang, Yanqing, 2025. "Large language models at work in China’s labor market," China Economic Review, Elsevier, vol. 92(C).
    22. Yang ZHANG & Ziang QIU Ziang & Donghyun PARK & Shu TIAN, 2026. "Role of Artificial Intelligence in Finance: Selective Literature Review and Implications for Asia's Financial Stability," Working Papers wp61, South East Asian Central Banks (SEACEN) Research and Training Centre, revised Feb 2026.

    More about this item

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • G0 - Financial Economics - - General

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