This paper explores how artificial intelligence (AI) adoption impacts firm-level productivity across FinTech, Retail, and Advanced Manufacturing sectors, using a systematic quantitative literature review and corporate 10-K filings. Drawing on an extensive literature review of 150+ peer-reviewed academic papers and 30 corporate annual reports, the research synthesizes key trends and benefits in AI adoption, its productivity implications, and associated challenges and barriers.
The findings reveal that there is a predominantly positive outlook in prior literature regarding AI’s impact on firms and its associated business processes, but that there is substantial debate and concern about appropriate productivity measures and the nature of AI’s socioeconomic implications and challenges. Moreover, AI adoption generally correlates with productivity improvements, particularly through automation, predictive analytics, and customer personalisation.
However, sector-specific challenges, such as trust in retail AI systems, skill gaps in manufacturing, and regulatory uncertainty in FinTech, could affect diffusion and workforce resilience. Consequently, the paper concludes with policy recommendations for responsible and inclusive AI deployment, aligned with the UK AI Opportunities Action Plan, and aligns the findings with the OECD’s AI input-output framework.
Author Vasileios Karountzos