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The Rise of AI Pricing: Trends, Driving Forces, and Implications for Firm Performance
We document key stylized facts about the time-series trends and cross-sectional distributions AI pricing and study its implications for firm performance, both on average and in response to monetary policy shocks. We use the online job postings data from Lightcast to measure the adoption of AI pricing. We infer that a firm is adopting AI pricing if it posts a job that requires AI-related skills and contains the keyword “pricing.” At the aggregate level, the share of AI pricing jobs in all pricing jobs has increased more than tenfold since 2010. The rise of AI pricing jobs has been broad-based, spreading across more industries than other types of AI jobs. At the firm level, larger and more productive firms are more likely to adopt AI pricing. Firms that adopted AI pricing experienced faster growth in sales, employment, assets, and markups, and their stock returns are also more responsive to high-frequency monetary policy surprises than non-adopters. We show that these empirical observations can be rationalized by a simple model where a monopolist firm with incomplete information about its demand function invests in AI pricing to acquire information.
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Small Businesses at the Frontier of the Generative AI Economy
How is the spread of generative artificial intelligence (GenAI) tools affecting small businesses? Read more about the EERN roundtable with leaders of small-scale enterprises currently integrating GenAI technologies.
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On-the-Job Exposure to AI Among Lower-Income Workers
To better understand the potential impacts of AI on the economy, this analysis assesses workers likely to be exposed to AI on the job, paying particular attention to workers in lower-income households, what occupations and industries they work in, and how exposure varies across different parts of the country.
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How Twelfth District Businesses are Rapidly Embracing GenAI
Emerging technologies are top of mind for Twelfth District businesses. Hear how they are using GenAI and their expectations for boosting workforce productivity.
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Understanding How Generative AI is Changing the Health Care and Legal Industries
Although relatively new for a wide generalized audience, generative artificial intelligence (AI) has already begun to change our economy, and it seems poised to drive even more fundamental changes in the future.
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Insights from EERN: GenAI Tools for Small Businesses
In a recent webinar, small business development centers shared how they and the small businesses they serve have incorporated GenAI into their work and the lessons they’ve learned.
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AI in Action: Practical Strategies for Small Businesses in Alaska and Nevada
On March 25, the EmergingTech Economic Research Network (EERN) held a webinar in partnership with the Alaska Small Business Development Center and the Nevada Small Business Development Center on the role of artificial intelligence (AI), including generative artificial intelligence (GenAI) tools, in modernizing business operations.
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The AI Investing Landscape: Insights from Venture Capital
In 2024, the San Francisco Fed and the Federal Reserve System Innovation Office launched the EmergingTech Economic Research Network (EERN) to support a better understanding of how new technologies like GenAI are shaping the economies of today and the future. As part of the EERN initiative, we often hold roundtable discussions to hear from industries […]
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Roundtable on AI and Medical Service Delivery
In 2024, the San Francisco Fed and the Federal Reserve System Innovation Office launched the EmergingTech Economic Research Network (EERN) to support a better understanding of how new technologies like GenAI are shaping the economies of today and the future. As part of the EERN initiative, we often hold roundtable discussions to hear from industries […]
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Understanding How Artificial Intelligence is Changing Advanced Manufacturing and Other Sectors of the Economy
The impact of generative AI is being felt across the economy. We sat down with 12th District business leaders to learn how they are adapting to this technology in advanced manufacturing and other sectors.