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The effects of artificial intelligence and digitalization on sustained corporate innovation

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  • Huang, Yan
  • Yan, JinJiang

Abstract

Existing literature lacks sufficient attention to the interaction between digital transformation and the advancement of artificial intelligence technology from a technological integration and synergy perspective. Based on panel data from Chinese Shanghai and Shenzhen A-share listed companies from 2014 to 2023, this study employs hierarchical regression analysis to elucidate the driving effects of digital transformation and AI technology development on enterprises’ sustainable innovation, with a focus on their synergistic role in incentivizing continuous innovation. Empirical findings indicate that both digital transformation and AI technology development individually contribute positively to corporate sustainable innovation. When considered jointly, a significant positive interactive effect emerges between the two technological factors, resulting in synergistic benefits through technological integration. Furthermore, it is observed that their collaboration significantly enhances corporate green transformation. The results provide theoretical guidance and practical insights for improving the effectiveness of digital transformation strategies and the precision of artificial intelligence technology application.

Suggested Citation

  • Huang, Yan & Yan, JinJiang, 2026. "The effects of artificial intelligence and digitalization on sustained corporate innovation," Finance Research Letters, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:finlet:v:87:y:2026:i:c:s1544612325022457
    DOI: 10.1016/j.frl.2025.108992
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