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Understanding Firms' AI Efforts and Their Economic Impact

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  • Tania Babina

Abstract

This paper reviews firm-level data on artificial intelligence and the emerging evidence on AI's economic effects. It argues that measurement is central: different AI datasets capture different objects (including invention versus use, internal capability building versus outsourcing, and realized activity versus investor perceptions) and can therefore lead to different conclusions. The paper develops a framework for choosing among these measures and surveys available data sources on firm AI efforts. It synthesizes evidence on AI's effects on firm growth, valuation, productivity, risk, labor, competition, financial markets and applications. The paper concludes by suggesting some ideas for future research.

Suggested Citation

  • Tania Babina, 2026. "Understanding Firms' AI Efforts and Their Economic Impact," NBER Working Papers 35123, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35123
    Note: AP CF EFG LS PR
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    More about this item

    JEL classification:

    • G0 - Financial Economics - - General
    • J0 - Labor and Demographic Economics - - General
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

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