Speaker
Description
Abstract : The strategic integration of Artificial Intelligence (AI) and Big Data analytics is rapidly transforming corporate business models, reshaping competitive dynamics, and influencing financial outcomes. As digital capabilities become critical to sustaining market leadership, understanding the financial return on technology investment is increasingly essential. This study examines the impact of AI-related IT investments on firm performance, utilizing data for over 2k publicly listed global corporations selected based on disclosed AI initiatives, operational integration, sector and geographic diversification, and verifiable investment levels. Empirical results show a strong and growing positive relationship between AI/Big Data investments and firm revenues, particularly evident from 2022 onwards. Regression analyses indicate that each additional billion USD in IT spending is associated with an estimated USD 3.5 to 4.4 billion increase in revenue. Sector-specific and country-level factors are identified as significant moderators of this effect. Cluster analysis further segments firms into three maturity stages of AI adoption, revealing a direct link between higher AI investment maturity and superior financial performance. These findings highlight the material contribution of AI-driven technological capabilities to revenue growth and operational efficiency. Consequently, some data points were derived through estimation, either drawn from different fiscal years or inferred from R&D expenditures. These figures were identified by systematically reviewing explicit mentions of AI-related activities and investments in annual reports. While this approach ensures a consistent methodology across the sample, it also reflects the broader challenge of limited granularity in corporate disclosures related to emerging technologies. Improved transparency and standardization in reporting would significantly enhance the reliability of future financial analyses in this domain.
