Recent research indicates that AI use in producing goods and services rises with firm size.





United States Census Bureau [ [link removed] ]





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Is AI Use Increasing Among Small Businesses? [ [link removed] ]

"Written by: Emin Dinlersoz and Nathan Goldschlag"

Recent research shows that advanced technology adoption and use are concentrated in large firms (Zolas et al., 2020 [ [link removed] ]; Dinlersoz and Wolf, 2023 [ [link removed] ]; Acemoglu et al., 2022 [ [link removed] ]; McElheran et al., 2024 [ [link removed] ]; and Bonney et al., 2024 [ [link removed] ]). This pattern also applies to artificial intelligence (AI).

Evidence from the U.S. Census Bureau’s Annual Business Survey for the years 2017 and 2018 indicates that AI use in producing goods and services rises with firm size (Zolas et al., 2020 and Acemoglu et al., 2022). However, this pattern may be changing in the wake of recent advances in generative AI, which may have a disproportionate impact on small firms’ adoption and use of AI.

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Some researchers argue that generative AI can in theory help close the technology and performance gap between small and large firms (e.g., Acar and Gvirtz, 2024 [ [link removed] ]). It can enable employees in small firms to take on tasks that otherwise require additional specialized workers or outsourcing, both of which are costly. For instance, tasks such as marketing, designing websites, creating product descriptions, images and videos, gaining customer insight, and interacting with customers can be performed with the help of generative AI.

While generative AI may not necessarily level the playing field between small and large firms, it can give some small businesses a competitive edge and boost their productivity, resulting in higher adoption of AI among small businesses. These potential benefits may also result from using other types of AI, not just generative AI. *Continue reading... [ [link removed] ]*

AI Firm Size [ [link removed] ]





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