The Finance Brown Bag Seminar is held by the Institute for Finance, Banking and Insurance (WU Vienna) and the Vienna Graduate School of Finance (VGSF). It serves as a presentation platform for PhD students, faculty members, and visitors. An overview of BBS on the website of the Institute for Finance, Banking and Insurance.
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Gordon Phillips, Tuck School of Business, Dartmouth College
The Impact of Cloud Computing and AI on Industry Dynamics and Competition
(joint with Yao Lu and Jia Yang)
We examine the rise of cloud computing and AI in China and their impact on industry dynamics after a shock to the cost of Internet-based computing power. We find that cloud computing is associated with an increase in firm entry, exit, the likelihood of merger, and equity financing. Conversely, AI adoption has no impact on entry but reduces the likelihood of exit and merger. Firm size plays a crucial role in these dynamics: cloud computing increases exit rates across all firms, while larger firms benefit from AI, experiencing reduced exit rates. Cloud computing decreases industry concentration, but AI increases concentration.
