Co-author of the study, assistant professor of finance Tania Babina at Columbia University, will describe findings including the positive effects of artificial intelligence (AI) on firms, in the discussion moderated by Russell Wermers, Dean’s Chair in Finance and Center for Financial Policy director at Maryland Smith.
The paper shows that firms investing in AI experience faster growth in both sales and employment, which translates into analogous growth at the industry level. The positive effects are concentrated among the ex-ante largest firms, leading to a positive correlation between AI investments and an increase in industry concentration. The findings further support the view that new technologies, such as AI, increase the scale of the most productive firms and contribute to the rise of superstar firms.
For more information and registration, go to https://go.umd.edu/SgN.