A recent extensive study has revealed the transformative effects of Generative Artificial Intelligence (GenAI) on firm productivity, focusing on online retail. Through large-scale field experiments, the research demonstrates that adopting GenAI technologies can significantly enhance sales performance across various firms. The study implemented GenAI tools in diverse online retailers to improve personalized customer interactions, inventory management, dynamic pricing, and automated content generation. By comparing sales metrics before and after GenAI deployment, researchers quantified the tangible benefits of these technologies. Results showed that sales growth due to GenAI varied widely among firms, with treatment effects ranging from 0% to 16. 3%. This variation was largely influenced by how much GenAI contributed beyond existing practices and infrastructure. Firms with advanced digital systems experienced modest or no statistically significant sales increases, while those with less sophisticated setups saw substantial gains by unlocking new efficiencies and better customer engagement. The study emphasizes the critical role of existing organizational capabilities in realizing GenAI’s value.

Companies with strong data analytics, robust IT systems, and innovative cultures were better able to leverage GenAI as an accelerator to enhance their processes. Conversely, firms with less mature technological foundations faced challenges such as employee training, system integration, and data quality issues, which sometimes limited GenAI's initial impact, highlighting the need for preparatory investments in digital infrastructure. Beyond sales, retailers reported broader productivity gains, including improved customer satisfaction through personalized experiences, more efficient supply chains via enhanced demand forecasting, and cost reductions from automated content and advertising creation. These advantages contribute to sustainable competitive edges in an increasingly digital marketplace. The authors recommend a strategic approach to GenAI adoption, urging firms to carefully evaluate their readiness and capabilities. Success depends not only on technology investment but also on aligning organizational structures, fostering data-driven cultures, and monitoring performance to ensure objectives are met. As GenAI technologies advance rapidly, their integration is becoming a key factor in productivity and growth. This study provides valuable insights for online retailers and other sectors aiming to use AI innovations to boost efficiency, customer engagement, and revenue. In summary, the study conclusively shows that GenAI adoption can substantially increase firm productivity and sales, with impacts ranging from negligible to over 16%. However, the extent of these benefits critically depends on how well firms integrate GenAI with existing systems and practices, underscoring the importance of tailored AI strategies to maximize value in the digital economy.