Skip to content

Research

Artificial Intelligence and Firm Resilience: Empirical Evidence from Natural Disaster Shocks

Miaozhe Han, Hongchuan Shen, Jing Wu, Xiaoquan Zhang · Information Systems Research · 25 Mar 2025

Read original source

Where this sits in the debate

Direction of the finding as read from the abstract by an AI model (AI-written).

Abstract

Artificial intelligence (AI) has been increasingly deployed in business operations over the past decade, whereas direct evidence of its effectiveness in uncertain contexts is limited. Our work examines the contribution of AI to corporate resilience under natural disaster shocks, particularly concentrating on AI-using and goods-producing firms. We measure firm AI investment by the cumulative AI-relevant skills extracted from a comprehensive job posting database and firm resilience by the changes in corporate valuation in response to operational shocks. Evidence suggests that AI generates resilience: An average firm that equips 2.4% of total jobs to be AI-related could approximately recover the full damage of disasters reflected in corporate valuation over a short event window. From the product function test, we find that resilience is attributable to the moderating effect of AI on the damaged input responsiveness under the volatile production environment. Our analyses further reveal a pressing phenomenon: Although underperforming firms could benefit more from an additional unit of AI investment, the realized productivity is notably restrained due to a lack of complementary organizational designs. Our findings provide managerial implications regarding the interplay between environmental conditions and firm investments in both AI technology and complementary infrastructures.

About this publication

Leading field journal. A leading journal in economics or a neighbouring field (on the Tinbergen Institute’s A list or near the top of the RePEc ranking), or a top-rated computer-science venue.

Placed by: Leading field journal. How sources are ranked.

Published
2025 (19 months ago)
Citations
46 (OpenAlex)

Citations in context

median 10 this paper: 46 0 591

46 citations — 85th percentile among the 33 indexed papers from 2025 in this collection. Citation counts favor older papers; this compares only same-year papers here, not the whole literature.

2020202120222023202420252026 published

□ added to this collection in 2026.

More on this topic

Related by theme, not necessarily by method or conclusion.

Overview assembled automatically from collected metadata. How this site is built.