Research

Working Papers

AI Regulation and Voluntary Public Disclosure: Early Evidence from the EU AI Act

Solo-authored job market paper

Abstract: "This paper examines whether and how AI regulation can influence firms’ voluntary public disclosure choice by examining AI-related disclosure responses to the proposed European Union Artificial Intelligence Act (EU AI Act). Although this regulation does not require any public disclosure about AI, it may affect disclosure

through changes in business practices and increased salience of AI as a regulated activity. I find that European firms are, on average, less likely to disclose about

AI after the proposal compared to U.S. firms. There is substantial variation in this effect: European firms are more likely to start disclosing about AI, but also more

likely to stop such disclosure after the proposal compared to U.S. firms. Descriptives suggest that these disclosure choices are associated with underlying financing and

innovation practices. Furthermore, content analysis using topic modeling shows a lower emphasis on risk by European firms compared to U.S. firms following the proposal. These findings hold across all levels of changes in business practices, while the level of salience only influences the choice to stop disclosing. These results

suggest that regulation of AI can reshape the voluntary public disclosure choice, leading to a new disclosure equilibrium."

Narrative Disclosures of Loss Firms

with Jeroen Koenraadt and Edith Leung (supervisor)

Received Convergence funding from AI and data science in 2023 

Mandatory Pay Disclosures in Job Postings

with Jeroen Koenraadt, Nico Lehmann and Edith Leung (supervisor) 

Link to the latest draft: papers.ssrn.com/sol3/papers.cfm?abstract_id=6431939