New research uses unique survey data from UK companies to investigate how structured management is associated with early adoption of AI. Dr John Lourenze Poquiz and Nghi Nguyen find that better managed companies are more likely to use AI, even after accounting for business characteristics such as age, size, industry and location.
Abstract
This paper provides early evidence that AI adoption by firms is linked to management practices in unique ways. Using panel data from the UK Management and Expectations Survey (MES), we find that firms with higher baseline management scores are significantly more likely to adopt AI. This relationship is specific to AI: the same management practices show no relationship with the adoption of other technologies such as robotics, specialised equipment, or specialised software. We also find that management capabilities related to performance measurement appear particularly important to AI adoption. These results suggest that organisational complementarities are specific to different technologies, with implications for shaping policies to encourage AI adoption by firms.
Read the blog: Why AI is more than just ‘plug and play’ for businesses
