Post by CUHK Business School

New research by Professor Jing Wu, Professor of the Department of Decisions, Operations and Technology, and Professor Michael Zhang, Wei Lun Professor of Business AI at the same department at CUHK Business School, discovers that AI investment is a vital insurance premium for firm resilience against natural disaster. In an environment where record-breaking disasters have become a new norm, this study proves that AI talent effectively mitigates stock crashes and accelerates recovery. By concentrating AI capabilities in high-level cognitive tasks and supply chain coordination, firms can optimise production inputs even when resources are scarce. Interestingly, while AI boosts productivity during stable periods, its unique value lies in assisting complex decision-making during disruptive upheavals. However, this resilience does not equally offset reputational or contractual damage from human-induced shocks. For business leaders, the takeaway is clear: prioritise organisational design and AI-integrated procedures to ensure technology serves as a robust risk detector and mitigation engine. Investing in AI-related skills is a strategic necessity in the new world order. Read the full article: https://lnkd.in/gjxQYJ9k Follow us for more #ChinaBusinessKnowledge #CUHKBusinessSchool #LookForward #CUHKResearch #ChinaBusinessKnowledge #BusinessEducation #AI