Why Does AI Adoption Differ So Much across Countries

2026

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AI-generated summary

1) This paper investigates the significant disparities in AI adoption between the U.S. and Europe, revealing that management practices and employer encouragement are key drivers, not just demographics or industry composition.
2) * Explores the gap in AI adoption between the U.S. and six European countries, noting U.S. firms' higher adoption rates.
* Analyzes demographic and firm composition factors, finding they explain a portion of the gap but not all.
* Identifies management practices, specifically employer encouragement and tool provision, as a powerful predictor of AI adoption.
3) AI adoption, management practices, U.S. vs. Europe, labor markets, firm behavior

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