What effects does adoption of AI and robotics have on productivity and employment growth at firm and industry levels?
In an era where artificial intelligence (AI) and robotics are transforming business landscapes, this study investigates their impact on firm-level productivity and employment growth, across various industries. We examined the nuanced interplay between automation and key organizational outcomes by em...
| Main Authors: | , , |
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| Format: | Final Year Project (FYP) |
| Language: | English |
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Nanyang Technological University
2024
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10356/175546 |
| _version_ | 1811679807986991104 |
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| author | Bhagat, Khushi Dodrajka, Utkarsh Gupta, Yash |
| author2 | Wu Guiying, Laura |
| author_facet | Wu Guiying, Laura Bhagat, Khushi Dodrajka, Utkarsh Gupta, Yash |
| author_sort | Bhagat, Khushi |
| collection | NTU |
| description | In an era where artificial intelligence (AI) and robotics are transforming business landscapes, this study investigates their impact on firm-level productivity and employment growth, across various industries. We examined the nuanced interplay between automation and key organizational outcomes by employing a combination of text mining and empirical analysis on data spanning 2015 to 2022 from US-listed firms.
The results reveal that while automation adoption is on the rise, its impact on labour productivity and Return on Assets (ROA) does not materialize immediately. This reflects Solow's 'Productivity Paradox' — an initial decline in efficiency post-adoption. Interestingly, automation leads to an initial negative effect on employment growth, suggesting potential labour displacement which may stabilize over time, highlighting the transition towards a workforce that adapts to technological advancements.
Furthermore, our industry-specific analysis shows that the impact of automation is contingent upon each industry's characteristics. Industries characterized by heavy machinery illustrate a clearer pathway towards productivity gains and labour displacement. In contrast to this, others like the tobacco industry encounter decreased productivity alongside increased employment growth, emphasizing the heterogeneity of automation effects.
This paper contributes to the understanding of technological revolution in the 21st century, advocating for strategies that balance technological progress with labour market health. It underscores the importance of long-term planning and adaptability in the face of automation, providing insights for stakeholders and policymakers navigating the complexities of the digital age. |
| first_indexed | 2024-10-01T03:15:02Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/175546 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:15:02Z |
| publishDate | 2024 |
| publisher | Nanyang Technological University |
| record_format | dspace |
| spelling | ntu-10356/1755462024-05-05T15:31:51Z What effects does adoption of AI and robotics have on productivity and employment growth at firm and industry levels? Bhagat, Khushi Dodrajka, Utkarsh Gupta, Yash Wu Guiying, Laura School of Social Sciences guiying.wu@ntu.edu.sg Social Sciences In an era where artificial intelligence (AI) and robotics are transforming business landscapes, this study investigates their impact on firm-level productivity and employment growth, across various industries. We examined the nuanced interplay between automation and key organizational outcomes by employing a combination of text mining and empirical analysis on data spanning 2015 to 2022 from US-listed firms. The results reveal that while automation adoption is on the rise, its impact on labour productivity and Return on Assets (ROA) does not materialize immediately. This reflects Solow's 'Productivity Paradox' — an initial decline in efficiency post-adoption. Interestingly, automation leads to an initial negative effect on employment growth, suggesting potential labour displacement which may stabilize over time, highlighting the transition towards a workforce that adapts to technological advancements. Furthermore, our industry-specific analysis shows that the impact of automation is contingent upon each industry's characteristics. Industries characterized by heavy machinery illustrate a clearer pathway towards productivity gains and labour displacement. In contrast to this, others like the tobacco industry encounter decreased productivity alongside increased employment growth, emphasizing the heterogeneity of automation effects. This paper contributes to the understanding of technological revolution in the 21st century, advocating for strategies that balance technological progress with labour market health. It underscores the importance of long-term planning and adaptability in the face of automation, providing insights for stakeholders and policymakers navigating the complexities of the digital age. Bachelor's degree 2024-04-29T04:24:37Z 2024-04-29T04:24:37Z 2024 Final Year Project (FYP) Bhagat, K., Dodrajka, U. & Gupta, Y. (2024). What effects does adoption of AI and robotics have on productivity and employment growth at firm and industry levels?. Final Year Project (FYP), Nanyang Technological University, Singapore. https://hdl.handle.net/10356/175546 https://hdl.handle.net/10356/175546 en HE1AY2324_22 application/pdf Nanyang Technological University |
| spellingShingle | Social Sciences Bhagat, Khushi Dodrajka, Utkarsh Gupta, Yash What effects does adoption of AI and robotics have on productivity and employment growth at firm and industry levels? |
| title | What effects does adoption of AI and robotics have on productivity and employment growth at firm and industry levels? |
| title_full | What effects does adoption of AI and robotics have on productivity and employment growth at firm and industry levels? |
| title_fullStr | What effects does adoption of AI and robotics have on productivity and employment growth at firm and industry levels? |
| title_full_unstemmed | What effects does adoption of AI and robotics have on productivity and employment growth at firm and industry levels? |
| title_short | What effects does adoption of AI and robotics have on productivity and employment growth at firm and industry levels? |
| title_sort | what effects does adoption of ai and robotics have on productivity and employment growth at firm and industry levels |
| topic | Social Sciences |
| url | https://hdl.handle.net/10356/175546 |
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