Generative AI and Firm Productivity: Field Experiments in Online Retail – MSI

Working Paper

Generative AI and Firm Productivity: Field Experiments in Online Retail

Lu Fang, Zhe Yuan, Kaifu Zhang, Dante Donati and Miklos Sarvary

Apr 9, 2026

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Examines the impact on revenue of an online retailer’s adoption of generative AI in seven workflows across the customer journey.

Topics

Omnichannels & Customer Journey Technology and AI

research recap

How GenAI Generates Revenue in Online Retail: By Reducing Friction

GenAI may enhance an individual’s productivity, but can this scale to justify corporate investments? In online retail, holding implementation and organizational factors constant, GenAI assisted workflows can increase revenue by reducing friction at several touchpoints across the customer journey. Less experienced consumers and smaller and newer sellers benefit the most.

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