Firm maturity, AI adoption, and financial performance : a study of publicly listed service firms in Finland

Abstract

Artificial intelligence (AI) has greatly impacted the ways of doing business, especially the strategic decision-making process and financial results. This study aims to explore firm maturity, AI adoption, and financial performance, with a focus on publicly listed service firms in Finland. In addition, it examines how firm size and age affect the relationship between the use of AI and financial results. To achieve this, the study employs a quantitative approach to analyse the implementation of AI and its financial impacts. The adoption of AI is determined by the keyword frequency method from the annual reports of the companies. At the same time, the financial performance is measured by Return on Assets (ROA) and Return on Equity (ROE). The findings show that the use of AI is associated with risk-taking behaviours, but it does not necessarily result in positive financial results. Strategic planning of AI adoption varies with the maturity of the firm, where mature firms adopt a phased approach to gain operational effectiveness while younger firms implement AI more forcefully to create a competitive position. This study shows that the effect of AI on financial performance is a function of the approach to adoption, regulatory issues, and industry factors. Within the context of the Organizational Life Cycle (OLC) and Technology-Organization-Environment (TOE) frameworks, this study provides a comprehensive view of the role of AI in corporate strategy. The findings of this study are important to business executives and policymakers in how to develop appropriate AI adoption plans based on the life cycle of a firm and long-term financial outcomes.