Alina Song, PhD Candidate, The Wharton School; Joao Gomes, Finance, The Wharton School
Abstract: This research project aims to investigate the impact of artificial intelligence (AI) investments by non-tech firms (AI-adopters) on product market competition, innovation, and industry dynamics. By leveraging novel datasets, including firm-level AI-workers, product-level pricing and quantities, and textual information from company filings, this study seeks to provide new insights into how AI adoption shapes product differentiation, firm entry and exit, and the intensity of competition within industries. By providing empirical evidence on these issues, this research project aims to inform policy discussions and contribute to shaping regulatory frameworks that balance fostering innovation with protecting consumer interests in a rapidly growing AI economy.