TY - UNPB
T1 - The Effects of Artificial Intelligence on Firms’ Internal Information Quality
AU - Rozario, Andrea
AU - Zhang, Chanyuan (Abigail)
PY - 2021/5/24
Y1 - 2021/5/24
N2 - This study explores whether the implementation of artificial intelligence (AI) in firms’ operations is associated with improvements in firms’ internal information quality (IIQ), as reflected in the quality of management earnings forecasts. We identify non-technology firms that have implemented AI in their operations from 2014 to 2018. We find that AI is associated with more accurate management earnings forecasts after its implementation and that it can more profoundly improve the accuracy of the first management earnings forecast compared to the last. Finally, we find that machine learning (ML) is the primary AI technology that contributes to the improvements in the accuracy of management earnings forecasts. We contribute to the literature by providing initial archival evidence about the association between AI implementation and improvements to IIQ.
AB - This study explores whether the implementation of artificial intelligence (AI) in firms’ operations is associated with improvements in firms’ internal information quality (IIQ), as reflected in the quality of management earnings forecasts. We identify non-technology firms that have implemented AI in their operations from 2014 to 2018. We find that AI is associated with more accurate management earnings forecasts after its implementation and that it can more profoundly improve the accuracy of the first management earnings forecast compared to the last. Finally, we find that machine learning (ML) is the primary AI technology that contributes to the improvements in the accuracy of management earnings forecasts. We contribute to the literature by providing initial archival evidence about the association between AI implementation and improvements to IIQ.
KW - Artificial Intelligence
KW - Internal Information Quality
KW - Management Earnings Forecasts
KW - Forecast Accuracy
U2 - 10.2139/ssrn.3850823
DO - 10.2139/ssrn.3850823
M3 - Working paper
BT - The Effects of Artificial Intelligence on Firms’ Internal Information Quality
ER -