AI, Human Capital, and Firm Performance: Evidence from State-Owned and Growing Firms

Both AI and human-computer interaction (HIC) demonstrate a more favorable impact on the performance of non-state-owned and growing firms. Notably, these technologies contribute to a significantly stronger efficiency enhancement in growing firms. In contrast, human capital exhibits a greater capacity for improving the input-output efficiency of state-owned enterprises (SOEs). This difference in impact may stem from the stronger motivational forces within non-SOEs. Compared to SOEs, they may be more inclined to leverage human-AI collaboration opportunities to minimize costs and maximize efficiency. The findings align with the firm's dynamic life cycle theory. Growing firms, often newcomers or younger entities, tend to experience more rapid productivity growth than their older counterparts. This accelerated growth can be attributed to their propensity for 'learning by doing' and their ability to readily adopt and master advanced technologies upon market entry.