UNVEILING THE POWER OF MACHINE INTELLIGENCE: A STUDY ON ITS IMPACT ON FINANCIAL PERFORMANCE AND RISK MANAGEMENT

Abstract

This study investigates the impact of Machine Intelligence on firm performance and risk management by analyzing data from 500 firms across various industries. We categorize firms into six levels of Machine Intelligence adoption—ranging from No Machine Intelligence to Experimental Machine Intelligence—to explore how different adoption levels influence performance metrics, risk management, and financial outcomes. Our findings reveal that firms with advanced Machine Intelligence capabilities experience significantly better performance scores, reduced risk levels, and improved financial metrics compared to those with lower adoption levels. Specifically, performance scores and market indices improve as Machine Intelligence adoption progresses, while risk levels and market volatility decrease. Financially, advanced Machine Intelligence is associated with higher revenues and profit margins. The research highlights the strategic value of Machine Intelligence in enhancing organizational success and stability, providing actionable insights for business leaders and policymakers. These results underscore the importance of investing in sophisticated Machine Intelligence technologies to gain a competitive edge and manage risks effectively.