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Media hype and technological breakthroughs are fuelling the race to adoptArtificial Intelligence amongst the business community, but is there evidenceto suggest this will increase productivity? This paper uses 2015-2019 microdatafrom the UK Office for National Statistics to identify if the adoption ofArtificial Intelligence techniques increases labour productivity in UKbusinesses. Using fixed effects estimation (Within Group) with a log-linearregression specification the paper concludes that there is no statisticallysignificant impact of AI adoption on labour productivity.

Does Artificial Intelligence benefit UK businesses? An empirical study of the impact of AI on productivity