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Intertwining artificial intelligence and efficiency: An empirical analysis of AI focus and operational efficacy in Chinese listed firms

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  • Li, Qianru
  • Zhang, Yuhao
  • Um, Geumchul

Abstract

This study contributes to the literature on the relationship between artificial intelligence (AI) focus and operational efficiency in three key ways: by emphasizing firms’ disclosure of their focus on AI, by providing new evidence from an emerging market context distinct from developed economies and evaluating the practical implications of AI focus through operational efficiency. Using data on Chinese-listed firms from 2010 to 2023, we proposed simultaneous equation models and estimated them using three-stage least squares (3SLS). The results revealed that AI focus is not associated with improvements in gross operational efficiency but is negatively related to net operational efficiency.

Suggested Citation

  • Li, Qianru & Zhang, Yuhao & Um, Geumchul, 2025. "Intertwining artificial intelligence and efficiency: An empirical analysis of AI focus and operational efficacy in Chinese listed firms," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325007111
    DOI: 10.1016/j.frl.2025.107451
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