Study

AI capability and company performance: a survey of 143 executives

Companies whose executives reported stronger AI capability also reported more organizational creativity and better performance. The study produced a 46-question measure of AI capability.

At a glance

Source
Mikalef and Gupta (2021). Artificial intelligence capability: Conceptualization, measurement calibration, and empirical study on its impact on organizational creativity and firm performance. Information & Management, 58(3), 103434. doi:10.1016/j.im.2021.103434
How it was done
The authors defined what makes up a company’s AI capability, built a 46-question survey to measure it, and tested how the score related to creativity and performance. Survey. People answered questions once. It shows what goes together, not what causes what.
Who took part
143 senior executives.
Where
United States.

“Findings empirically support the suggested theoretical framework and corresponding instrument and provide evidence that an AI capability results in increased organizational creativity and performance.”

What it found

  • AI capability is more than technology. The measure covers data, technology and basic resources; technical and business skills; and three organizational features: coordination between departments, the capacity to change, and willingness to take risks.
  • Companies with a higher score reported more creativity and better performance.

This is the main counter-example to the claim that readiness and maturity scores tell you nothing about results.

When the result holds

The link was found in one survey, at one point in time.

Limits

  • The same senior executives rated both the capability and the performance. People who rate their company highly on one thing tend to rate it highly on others.

Practices that use this study

This study limits or contradicts:

Assessments linked to this study