Abstract
The use of artificial intelligence (AI) and intellectual machines can support businesses in performing various activities. Therefore, it is necessary to examine the performance outcomes by assessing the concentration of AI technologies. To create a quantifiable score of AI concentration, AI-related terms are identified in the annual reports of all listed firms in the U.S. For analysis purposes, a fixed effects model is employed, using firms’ panel data from 2003 to 2022. The analysis reveals that AI concentration is beneficial for a company’s financial success. Additional analysis examines the moderating role of research and development (R&D). Firms with higher R&D spending experience increased financial benefits from concentrating on AI technologies. The uniqueness of this study lies in analyzing the financial success through the AI and R&D parameters. The findings support a higher concentration on AI, combined with higher R&D spending, to attain greater financial success. The main insights suggest that management must evaluate their existing focus on AI and R&D spending to improve their financial position.
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