No dia 8 de junho, entre as 13h00 e as 14h00, tem lugar uma sessão dos ISEG Research Seminars. O orador convidado será Art Durnev da Robins School of Richmond. Esta sessão decorre no Anfiteatro Novo Banco (Edifício Quelhas, 4º piso).
Os Seminários ISEG Research decorrem semanalmente, às quartas-feiras, contando com a participação de docentes do ISEG, bem como de outras instituições de ensino nacionais e internacionais.
Title
When AI Meets Nuclear Power: Energy Choice, AI Adoption, and Financial Fragility
Abstract
I develop a macro-finance model of Artificial Intelligence (AI) adoption and energy choice by companies. While nuclear energy provides more stable power sources, the resulting widespread AI deployment can endogenously reintroduce instability by magnifying firms’ exposure to shocks. This is because AI adoption raises productivity but replaces labor, increasing capital intensity and reducing labor stabilizing role. The model produces a nonlinear relationship between nuclear reliance, firm volatility, valuation, investment, and cross-sectional differences driven by firms’ AI sensitivity. Empirical work in progress combines firm-level AI measures, state nuclear variation, and international patent data. I find preliminary support for the model’s central mechanisms. The results highlight the need for policy frameworks that simultaneously encourage AI productivity gains, while managing heightened systemic risk and incentivizing low-volatility energy infrastructures.
