AI innovations and financial performance: An examination of patent filings and revenue generation

Abstract

Artificial intelligence (AI) is increasingly becoming indispensable for businesses, offering numerous advantages to compete in today's dynamic market landscape. This study investigates the relationship between AI patent filings and firms' performance in revenue generation from a point of view, aiming to elucidate the impact of AI investments on revenue generation. Leveraging data from The United States Patent and Trademark Office (USPTO) and employing regression analysis, the research finds a significant correlation between firms with AI patent applications and their generated revenue. The findings underscore the importance of AI investments for financial outcomes and provide valuable empirical evidence for strategic decision-making by businesses and policymakers. Additionally, the methodological approach adopted in the study contributes to the methodological approach available for future research in the field of AI and business performance analysis.