Transformative AI and Firms

We discuss key economic questions surrounding firms in a world where "transformative AI" (TAI)—described as a "datacenter full of geniuses" in Amodei (2024)—exists in every domain. We explore how firms may be able to adapt, compete, and evolve in this scenario. We propose a series of theoretical research questions and associated measurement challenges. Firms play a critical role in the adoption and diffusion of AI tools. We discuss open questions about potential firm structures, investment decisions, and competitive implications that could result from the advent of transformative AI. Firms have proven to be powerful aggregators of information and essential to producing and organizing knowledge, ultimately driving economic growth. TAI may fundamentally change the role of companies and how they are organized, shaping the impact of TAI on the economy.