Impact of artificial intelligence investment on firm value

Ariel K.H. Lui, Maggie C.M. Lee, Eric W.T. Ngai

Research output: Journal article publicationJournal articleAcademic researchpeer-review

31 Citations (Scopus)


As artificial intelligence (AI) has recently gained momentum and attention, the interest and investment in AI have also accelerated. However, the impact of AI on firm value is rarely discussed. On the basis of the 119 announcements of 62 listed firms who have invested in AI, this study finds that AI investment has a negative impact on the firms’ market value. The stock prices of the firms decrease by 1.77% on the day of the announcement. Nonmanufacturing firms and firms with weak information technology capabilities or low credit ratings suffer a more negative impact compared with other firms. The findings suggest that investors perceive AI investment announcements to be unwelcome news for the majority of firms. Subsequently, the characteristics affecting the shareholders’ reaction towards AI adoption are presented. This research offers one of the first empirical evidence about the market value of AI and provides a reference for firms interested in investing in AI.

Original languageEnglish
Pages (from-to)373-388
Number of pages16
JournalAnnals of Operations Research
Issue number1-2
Publication statusPublished - Jan 2022


  • AI
  • Artificial intelligence
  • Contextual factors
  • Event study
  • Market value

ASJC Scopus subject areas

  • General Decision Sciences
  • Management Science and Operations Research


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