CES Paper: Firm AI Exposure Predicts Adoption Significantly but Explains Only a Modest Share

TaniaBabina · x · 2026-10-07

A CES paper examines the relationship between AI exposure and actual AI adoption at the firm level. Exposure is positively and statistically significantly associated with adoption, but explains only a modest share of its variation.

The takeaway: how 'exposed' firms are to AI does not translate straightforwardly into real-world deployment — there is a clear gap between potential and actual adoption.

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