: distorted employment decisions, increased productivity, and higher exit rates. Our empirical analysis, using a novel dataset and …% points higher annual productivity growth, and a 3.6% points higher probability of exit for firms with binding employment … after 10 years. Additionally, an alternative policy of productivity investment subsidies proved costly and less effective in …

new ways of production that may increase productivity. So far, however, only very few studies investigated likely … productivity effects of AI at the firm-level; presumably because of lacking data. We exploit unique survey data on firms’ adoption … of AI technology and estimate its productivity effects with a sample of German firms. We employ both a cross …