Park, Jaecheol, Myunghwan Lee, Gene Moo Lee “Unpacking the AI Blackbox:  The Impact of AI Strategies on Firm Performance with a Dual Lens on Product and Process Orientation”, Work-in-Progress.

• Presentations: UBC (2024)

Artificial intelligence (AI) technologies have become increasingly pervasive and hold great potential for large-scale economic impact. Aligned with this trend, numerous studies explore the adoption and use of AI technologies on firm performance. However, they predominantly focus on AI as an input (e.g., labor/job posting), neglecting to consider the strategic deployment of AI in business operations. Thus, it is crucial to understand “how” and “where” to use AI to achieve business value. In this paper, we examine how firms’ strategic AI orientation affects firm performance with a dual-lens on product and process orientation. We measure AI orientation by employing LLM to assess it from strategy descriptions in Form 10-K filings between 2015 and 2022. Our findings show that 13% of firms have an AI orientation, 7% have an AI product orientation, and 3% have an AI process orientation. Additionally, we will provide some preliminary results on the impact of AI orientation on firm performance.