Financial risk and investment in artificial intelligence in the USA: a fresh evidence from quantile wavelet regression and quantile wavelet correlation tests

Purpose The present study aims to explore the co-movement between artificial intelligence (AI) investment and financial risk for the case of the USA using the most recently available dataset from 2012 to 2022. Design/methodology/approach The present study used the quantile in an augmented Dickey–Fuller (ADF) unit root, wavelet quantile regression (WQR) and wavelet quantile correlation (WQC) tests to capture and obtain information regarding time series variables at different quantiles and different time periods. Findings In the USA, financial stability and investments in AI are positively correlated at various quantiles and time periods. Since AI investment is positively correlated with financial stability, US policymakers should continue to support it. Originality/value Despite AI’s importance, comprehensive empirical research on this topic has not been conducted in the USA. A novel empirical approach is utilized in this study to fill a gap in the empirical literature for the USA.