The impact of artificial intelligence on the added value ‎of selected industrial activities in Iran

Articles in Press

Document Type : Original Article

Authors

1 Assistant Professor at Institute for Trade Studies and Research

2 Associate Professor at Institute for Trade Studies and Research

10.22075/jem.2025.36740.1987

Abstract

This study aims to investigate the impact of artificial intelligence on value added in 10 selected industrial sectors in Iran (focusing on labor), disaggregated by the two-digit ISIC codes (Revision 4), over the period 2017-2021 using a panel data approach. To do this, four models with different labor inputs were estimated. The results showed that the lowest elasticity of value added in the selected industries towards artificial intelligence (model with simple labor) was 0.19, and the highest elasticity of value added in these industries towards artificial intelligence (model with technician labor) was 0.25. Consequently, industries utilizing a more skilled workforce experience a greater impact of artificial intelligence on value-added. Therefore, developing effective policies and strategies to benefit from the advantages of AI-based advancements in the country's industries and using more skilled labor familiar with up-to-date technologies is recommended.

Keywords

Journal of Econometric Modelling

Articles in Press, Corrected Proof
Available Online from 21 April 2025

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