From Artificial Intelligence to Economic Growth: The Mediating Role of Employee Productivity in Firms’ AI Adoption
Luyue Li
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: BS.ACCOUNTING
Faculty Research Mentor: Meng, Chen
Abstract:
The rapid adoption of artificial intelligence (AI) technologies has generated extensive debate regarding their economic implications. While some argue that AI threatens employment by replacing human labor, others suggest that AI enhances productivity and supports firm-level economic growth. This study examines the economic impact of AI adoption by focusing on the mediating role of employee productivity in the relationship between AI adoption and firm economic growth.Grounded in theories of technological change and productivity growth, this research proposes a mediation framework in which AI adoption improves employee productivity, which subsequently contributes to firm economic growth. AI technologies such as automation tools, data analytics systems, and AI-assisted decision-making platforms can reduce routine workloads, improve task efficiency, and enhance managerial decisions. These productivity gains are expected to translate into higher output, cost reduction, and improved firm performance.This study’s key variables include the level of AI adoption, perceived changes in employee productivity, and firm economic growth, measured through indicators such as productivity improvement, revenue growth, and operational efficiency. The expected findings aim to contribute to the economic discussion on AI and labor by providing empirical evidence on the mechanism through which AI adoption affects firm outcomes. Rather than functioning solely as a labor-displacing force, AI may primarily influence economic growth by enhancing employee productivity. The results of this study offer practical implications for managers and policymakers by highlighting the importance of adopting AI in ways that complement human labor and promote sustainable firm-level economic development.