TY - GEN
T1 - Unravelling the Business Value of Artificial Intelligence
AU - Du, Kui
AU - Li, Gaoyong
AU - Li, Liang
AU - Zhang, Wei
N1 - Publisher Copyright:
© 2023 29th Annual Americas Conference on Information Systems, AMCIS 2023. All rights reserved.
PY - 2023
Y1 - 2023
N2 - This study aims to investigate how firms can prepare for artificial intelligence (AI) adoption and how AI creates business values for adopting firms. We propose that, first, leveraging AI for value creation depends on the presence of an enabling resource foundation, consisting of a stack of technological and managerial resources. According to the real options theory, the stronger such a resource foundation is, the more valuable the option it creates for a firm to adopt AI, and consequently the firm is more likely to exercise the option to adopt. Second, we propose that, after adoption, the depth of AI use can have negative impacts on employee productivity, while the breadth of AI use can have positive impacts. We empirically validate these hypotheses based on a sample of 6,854 manufacturing firms in a coastal province in China.
AB - This study aims to investigate how firms can prepare for artificial intelligence (AI) adoption and how AI creates business values for adopting firms. We propose that, first, leveraging AI for value creation depends on the presence of an enabling resource foundation, consisting of a stack of technological and managerial resources. According to the real options theory, the stronger such a resource foundation is, the more valuable the option it creates for a firm to adopt AI, and consequently the firm is more likely to exercise the option to adopt. Second, we propose that, after adoption, the depth of AI use can have negative impacts on employee productivity, while the breadth of AI use can have positive impacts. We empirically validate these hypotheses based on a sample of 6,854 manufacturing firms in a coastal province in China.
KW - Artificial Intelligence
KW - Business Value of IT
KW - Labor Productivity
KW - Real Options
KW - Resource-based View
UR - https://www.scopus.com/pages/publications/85192924140
UR - https://www.scopus.com/pages/publications/85192924140#tab=citedBy
M3 - Conference contribution
AN - SCOPUS:85192924140
T3 - 29th Annual Americas Conference on Information Systems, AMCIS 2023
BT - 29th Annual Americas Conference on Information Systems, AMCIS 2023
PB - Association for Information Systems
T2 - 29th Annual Americas Conference on Information Systems: Diving into Uncharted Waters, AMCIS 2023
Y2 - 10 August 2023 through 12 August 2023
ER -