Does Artificial Intelligence benefit UK businesses? An empirical study of the impact of AI on productivity

Author:

Sam Hainsworth

Keyword:

Economics, General Economics, General Economics (econ.GN)

journal:

date:

2023-10-05 16:00:00

Abstract

Media hype and technological breakthroughs are fuelling the race to adopt Artificial Intelligence amongst the business community, but is there evidence to suggest this will increase productivity? This paper uses 2015-2019 microdata from the UK Office for National Statistics to identify if the adoption of Artificial Intelligence techniques increases labour productivity in UK businesses. Using fixed effects estimation (Within Group) with a log-linear regression specification the paper concludes that there is no statistically significant impact of AI adoption on labour productivity.

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