Abstract
Abstract This article explores the relationship between the adoption of artificial intelligence (AI) tools and labor productivity. To do that, the article exploits a novel dataset of more than 10,000 Spanish firms through a Structural Equation Model (SEM). The article estimates the moderating and amplifying effects that the combined use of AI and other technologies has in this process. The results confirm that the firms that adopt and use a wider range of AI tools across more functional areas experience higher labor productivity. The complementary use of Big Data and the Internet of Things (IoT) enhances AI Diffusion within firms. However, this does not translate into labor productivity gains, which suggests that there is still room for AI to unleash its full potential.
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