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Good morning. AI already may be raising the productivity of European firms. A column published by the London-based non-profit Centre for Economic Policy Research used survey data to examine how AI adoption affects productivity and employment across more than 12,000 European firms. Highlights from the article that was published on Tuesday:
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The authors found that “AI adoption increased labour productivity levels by 4% on average in the EU, with no evidence of reduced employment in the short run.”
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The gains are not distributed evenly. “Medium and large firms, as well as firms that have the capacity to integrate AI through investments in intangible assets and human capital, experience substantially stronger productivity gains.”
The research underscored that to fully realize productivity gains from AI, leaders must make investments in a range of infrastructure, including software, data and worker training. The latter “amplifies AI’s productivity gains by 5.9 percentage points.”
The column adds to a body of research that captures the economic impact of AI. Stanford economist Erik Brynjolfsson, speaking last week at the WSJ Technology Council Summit, told the WSJ Leadership Institute’s Wendy Bounds that AI may be a factor in rising productivity.
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