The Impact of Artificial Intelligence Investment on Enterprise Productivity: A Case Study of the UK

Abstract

: This paper studies the impact of artificial intelligence (AI) investment on the productivity of UK enterprises and explores the different performances of AI in cities of different sizes at the regional level. Based on city-level Gross Value Added (GVA) data provided by the UK Office for National Statistics (ONS), this paper combines manufacturing performance and productivity indicators to construct an analytical framework, emphasizing the role of technology, to assess the different impacts of AI on UK enterprise production in various aspects. Building on theoretical and practical literature, this paper demonstrates through the application of AI in different industries and scenarios that AI may produce different impacts under different usage methods, and not all of them are positive. The analysis shows that the development of AI largely depends on the size of cities and enterprises, as well as related policies. The results of this study emphasize that the productivity dividend brought by AI is based on the rational use and effective management by enterprises and governments. Therefore, increasing enterprise management training is conducive to better improving enterprise productivity through AI investment.