EIB - AI adoption and productivity

2026

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This paper provides causal evidence that AI adoption increases labor productivity by 4% in European firms, driven by capital deepening rather than job displacement, though benefits are concentrated in larger firms.

* Examines the causal impact of AI adoption on firm-level productivity and employment in Europe.
* Finds that AI adoption leads to a 4% increase in labor productivity, primarily through capital deepening.
* Highlights that productivity gains are concentrated in medium and large firms, with potential implications for wage inequality.

Tags: AI adoption, productivity, employment, European firms, labor productivity

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