NBER: AI investment boosts firm productivity since 2018 by building organization capital

TaniaBabina · x · 2026-09-06

An NBER working paper by Babina, He & Jiang builds a firm-level AI-investment measure from AI-skilled employment and finds AI investment correlates with productivity growth only after 2018, not the prior decade. The gains trace to organization capital—durable firm-specific systems, processes and workflows captured via a new job-description-based measure—concentrated in AI-skilled jobs that build it. Conclusion: AI drives productivity by creating organization capital.

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