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Artificial intelligence-driven scalability and its impact on the sustainability and valuation of traditional firms

Business

Artificial intelligence-driven scalability and its impact on the sustainability and valuation of traditional firms

R. Moro-visconti, S. C. Rambaud, et al.

This study explores how artificial intelligence can enhance the EBITDA of traditional firms by boosting revenues and reducing expenses. Conducted by Roberto Moro-Visconti, Salvador Cruz Rambaud, and Joaquín López Pascual, it reveals AI's transformative potential for market value and financial sustainability.

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~3 min • Beginner • English
Abstract
The objective of this study is to determine the impact of artificial intelligence (AI) on the earnings before interest, taxes, depreciation, and amortization (EBITDA) of firms as a proxy of their financial and economic margins by improving revenues and minimizing expenses. This impact is positive on the market value and scalability by improving the economic and financial sustainability of companies. The methodology is based on a business plan that considers the savings obtained by a traditional firm implementing AI. Specifically, a sensitivity analysis will demonstrate that AI savings impact key parameters, leading to economic and financial sustainability. Additionally, a mathematical interpretation, based on network theory, will be produced to provide and compare the added value of two ecosystems (without and with AI that adds up new nodes and strengthens the existing ones). The main contribution of this paper is the combination of two unrelated approaches, showing the potential of AI in scalable ecosystems. In future research, this innovative methodology could be extended to other technological applications.
Publisher
Humanities and Social Sciences Communications
Published On
Nov 08, 2023
Authors
Roberto Moro-Visconti, Salvador Cruz Rambaud, Joaquín López Pascual
Tags
artificial intelligence
EBITDA
business sustainability
economic impact
sensitivity analysis
market value
scalability
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