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AI Users Are Not All Alike: The Characteristics of French Firms Buying and Developing AI

Author

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  • Flavio Calvino
  • Luca Fontanelli

Abstract

In this work we characterise French firms using artificial intelligence (AI) and explore the link between AI use and productivity. We distinguish AI users that source AI from external providers (AI buyers) from those developing their own AI systems (AI developers). AI buyers tend to be larger than other firms, but this relation is explained by ICT-related variables. Conversely, AI developers are larger and younger beyond ICT. Other digital technologies, digital skills and infrastructure play a key role for AI use, with AI developers leveraging more specialised ICT human capital than AI buyers. Overall, AI users tend to be more productive, however this is related to the self-selection of more productive and digital-intensive firms into AI use. This is not the case for AI developers, for which the positive link between AI use and productivity remains evident beyond selection.

Suggested Citation

  • Flavio Calvino & Luca Fontanelli, 2024. "AI Users Are Not All Alike: The Characteristics of French Firms Buying and Developing AI," CESifo Working Paper Series 11466, CESifo.
    • Handle: RePEc:ces:ceswps:_11466
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    More about this item

    Keywords

    technology diffusion; artificial intelligence; digitalisation; productivity;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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