USE OF ARTIFICIAL INTELLIGENCE IN FINANCE: EVIDENCE FROM FIRMS LISTED ON THE PAKISTAN STOCK EXCHANGE
Keywords:
Artificial Intelligence; corporate finance; financial performance; financial forecasting; investment efficiency; firm value; Pakistan Stock Exchange; machine learning; emerging markets.Abstract
Artificial Intelligence (AI) is increasingly playing a vital role in contemporary business financial management. The present study propose an empirical framework to study the use of AI in finance by the companies listed on Pakistan Stock Exchange (PSX). The study highlights how the use of AI is correlated with corporate financial performance, financial forecasting capability, investment efficiency and firm value. A longitudinal panel of non-financial firms listed on PSX is envisioned for the years 2018-2025. The theoretical framework includes the elements of the Technology–Organization–Environment framework and Dynamic Capabilities Theory. The study suggests fixed-effects panel regression and nonlinear specifications and endogeneity-robustness procedures. The paper builds upon the current body of literature in two ways: First, it introduces Pakistan-specific evidence from the listed companies and second, it suggests a clear approach to assessing AI adoption based on publicly available corporate disclosures.
