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Artificial intelligence and digital industry agglomeration development -Theory and empirical analysis from urban economics

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  • Li, Lingxiao
  • Jin, Sensen
  • Zhao, Junli
  • Ma, Cunxiao
  • Diao, Yu

Abstract

The fundamental principle of urban economics is the analysis of the spatial distribution of economic activities and urban forms. Artificial intelligence is a revolutionary force that is reshaping the underlying logic of digital industry agglomeration. This article employs urban panel data from 2006–2022 to explore the theoretical logic and underlying mechanisms of artificial intelligence in the digital industry agglomerations development. Research has found that artificial intelligence enhances the digital industry agglomeration development by improving urban management efficiency, human capital, and innovation levels. In addition, the promoting effect of artificial intelligence on the digital industry agglomeration development is more significant in central and western cities, as well as small and medium-sized cities and higher level foreign investment. This study offers insights from the perspective of artificial intelligence to augment the theoretical framework of urban economics. Additionally, it provides a foundation for understanding the enhancement of digital industry agglomeration development.

Suggested Citation

  • Li, Lingxiao & Jin, Sensen & Zhao, Junli & Ma, Cunxiao & Diao, Yu, 2026. "Artificial intelligence and digital industry agglomeration development -Theory and empirical analysis from urban economics," Economic Analysis and Policy, Elsevier, vol. 90(C), pages 1071-1088.
  • Handle: RePEc:eee:ecanpo:v:90:y:2026:i:c:p:1071-1088
    DOI: 10.1016/j.eap.2026.02.014
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