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Artificial intelligence technology innovation and firm productivity: Evidence from China

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  • Zhai, Shaoxuan
  • Liu, Zhenpeng

Abstract

This study empirically examines the influence of artificial intelligence (AI) technology innovation on productivity using a sample of Chinese-listed companies. The results underscore that AI technology innovations can significantly enhance firms' total factor productivity. Moreover, while this positive impact is generalizable across firms, it is more pronounced in large-size enterprises, state-owned enterprises, and labor-intensive industries. Additionally, the mechanisms analysis reveals that cost reduction, increased utilization of highly skilled labor inputs, facilitation of digital transformation, and improvement in innovation efficiency are mechanisms through which AI technology innovation enhances productivity.

Suggested Citation

  • Zhai, Shaoxuan & Liu, Zhenpeng, 2023. "Artificial intelligence technology innovation and firm productivity: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PB).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323008097
    DOI: 10.1016/j.frl.2023.104437
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    Cited by:

    1. Nakatani, Ryota, 2024. "Multifactor productivity growth enhancers across industries and countries: Firm-level evidence," MPRA Paper 120503, University Library of Munich, Germany.

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    More about this item

    Keywords

    Artificial intelligence technology innovation; Firm productivity;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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