Friday Seminar - "Artificial Intelligence and Firms' Systematic Risk" - Anastassia Fedyk (Berkeley Haas)
Anastassia Fedyk, Assistant Professor of Finance at Haas School of Business at UC Berkeley, will present her research at SSE main building (Room A720) on Friday, Dec 6 at 10:30 CET.
Starttid:
2024-12-06 at 10:30
Sluttid:
2024-12-06 at 11:45
Tidszon:
CET
Plats:
Room A720, SSE main building, entrance via Bertil Ohlins Gata 4
Abstract: We provide direct evidence that firms' investments in new technologies affect the composition of firms' risk profiles. Leveraging comprehensive data on firm-level artificial intelligence (AI) investments, we document that firms that invest more in AI experience increases in their systematic risk, measured by market beta. This is unique to AI: robotics, IT, organizational capital, and R&D investments do not display similar effects. Our results are consistent with AI investments creating growth options: AI-investing firms become more growth-like, and the effect on market betas concentrates during market upswings and periods of increased news and attention around AI advances.