AI Use trends across businesses – who is using it, and how are they improving productivity ?

Analysis of a survey of over 1.2 million firms (NBER # 32319) in a paper titled “Tracking Firm use of AI in Real Time” suggests that the fraction of firms reporting use of AI grew from 3.2% to a projected 6.6% between September 2023 and 2024. Adjusted for number of employees, young and mature firms showed greater use of AI, a U shared adoption as a function of firm age. The most significant use cases were in marketing and in chat agents, followed by data analysis, and while these tools substituted for some employee tasks, they were not expected to decrease employment. In competitive industries, will Gen AI tools just improve service to the consumer, with no significant firm level profit impact ? How should firms adjust their organizations to enable adoption by their employees ? What can the firms in the middle do to also engage with exploration of Gen AI tools ?

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