AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
The Adoption of Industrial AI in America
AEA Papers and Proceedings
(pp. 20–25)
Abstract
Using a mandatory, purpose-designed Census Bureau survey of approximately 28,500 establishments, we provide new evidence on industrial AI adoption in US manufacturing. Despite widespread digitization, only 22.8 percent of plants report any AI use as of 2021; intensity-weighted adoption is far lower. Adoption correlates with more-recent digital infrastructure—cloud computing and predictive analytics—rather than legacy on-premises IT or descriptive analytics. Structured production-process management and size are significant predictors. Cost and lack of applicable use case are the most cited barriers, followed by expertise. Prior productivity does not predict use, pointing to organizational readiness as a key barrier to AI diffusion.Citation
McElheran, Kristina, Mu-Jeung Yang, Zachary Kroff, and Erik Brynjolfsson. 2026. "The Adoption of Industrial AI in America." AEA Papers and Proceedings 116: 20–25. DOI: 10.1257/pandp.20261033Additional Materials
JEL Classification
- C45 Neural Networks and Related Topics
- D22 Firm Behavior: Empirical Analysis
- L25 Firm Performance: Size, Diversification, and Scope
- L60 Industry Studies: Manufacturing: General
- M15 IT Management
- O32 Management of Technological Innovation and R&D