Making business processes intelligent: Complementarities of combining robotic process automation and AI technologies

This study examines the combined effects of Robotic Process Automation (RPA) and Artificial Intelligence (AI) on firm performance using two datasets covering firms worldwide. While most previous research examined each technology in isolation, this study analyzes their joint use to understand whether and how these technologies complement one another to enhance efficiency and revenue growth. RPA automates repetitive tasks, while AI supports cognitive tasks, optimizing decision-making. Together, RPA and AI form Intelligent Process Automation (IPA), enabling firms to automate more complex tasks. Results of the analysis reveal a surprising tension: while IPA (the combination of RPA and AI) is associated with revenue growth achieved through price premiums, it is not associated with incremental efficiency improvement beyond the separate effects of each technology. This challenges the assumption that IPA primarily enhances productivity through increased efficiency. The findings also show that firms that adopt these technologies with a clear strategy of promoting revenue growth achieve better outcomes from IPA.