New intelligent empowerment for digital transformation

Abstract

This study proposes an innovative evaluation method based on large language models (LLMs) specifically designed to measure the digital transformation (DT) process of enterprises. By analyzing the annual reports of 4407 companies listed on the New York Stock Exchange and Nasdaq from 2005 to 2022, a comprehensive set of DT indicators was constructed. The findings revealed that DT significantly improves a company's financial performance, however, different digital technologies exhibit varying effects on financial performance. Specifically, blockchain technology has a relatively limited positive impact on financial performance. In addition, this study further discovered that DT can promote the growth of financial performance by enhancing operational efficiency and reducing costs. This study provides a novel DT evaluation tool for the academic community, while also expanding the application scope of generative artificial intelligence technology in economic research.