Paper Models Enterprise AI Adoption as a Real-Options Timing Problem
A new arXiv paper frames the decision of when firms should adopt artificial intelligence as a timing problem rather than a simple cost-benefit calculation. The author argues that because the technology frontier keeps improving, implementation is partly irreversible, and firms build capabilities only by deploying systems, companies face a trade-off between adopting early and waiting for better options. The work applies a real-options model to this setting.