School News

Prof. Roni Michaely and coauthors’ research “Producing AI Innovation and Its Value Implications”, won the best research paper award at the Finance Symposium 2024. The research offers a roadmap for understanding the far-reaching impacts of the artificial intelligence (AI) revolution on innovation, corporate strategy, and firm value. By examining the activities of U.S. publicly traded firms, it is discovered that AI accounts for a rapidly growing share of innovative work in the last 30 years (1990-2020), with a record of 25% by scientific value and 35% by commercial value.

• AI accounts for a significant and rapidly growing share of innovative work produced over the past 30 years
• Firms strategically align their R&D efforts to capitalise on the AI boom, driven by their own and their customers’ exposure to the powerful technology
• AI production signifies higher profitability and lower risk, leading to major increases in a firm’s future stock returns

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