When does AI pay off? AI-adoption intensity, complementary investments, and R&D strategy

The paper written by YS Lee, T Kim, S Choi, and W Kim at The International Journal of Technological Innovation, Entrepreneurship and Technology Management analyzes the impact of AI adoption on the performance of high-tech ventures. Their study indicates that companies' revenue growth only increases following sufficient investment in AI, and the benefits of AI adoption are more pronounced in companies that also invest in complementary technologies and pursue internal R&D strategies.

In particular, the researchers found that AI adoption at low levels does not lead to significant revenue growth. However, as the intensity of AI adoption increases, revenue growth becomes more apparent. They also discovered that the performance gains from adoption are more significant in companies that invest in complementary technologies such as cloud computing and database systems.

Furthermore, the study reveals that the positive relationship between AI adoption intensity and revenue growth is stronger in companies that pursue a more exclusive R&D strategy specific to the venture.

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Access the article here.