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The Effect Of Artificial Intelligence Implementation On Total Factor Productivity, Matthew Toy
The Effect Of Artificial Intelligence Implementation On Total Factor Productivity, Matthew Toy
Honors Theses
Investment in and availability of artificial intelligence has become a central concern for most developed economies because of is expected positive impact on an economy. Unlike other forms of capital investment, investment in AI may lead to innovative products and processes that should increase productivity. However, AI’s overall effect on productivity remains largely unknown. Adopting AI replaces labor with capital, which will have a positive effect on labor productivity, but overall productivity may remain the same or even decrease. I look at the impact of AI implementation on Total Factor Productivity (TFP) in order to assess its effect on the …