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Intelligent revolution of educational resources: AI-driven reallocation effects and economic consequences

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  • Yang, Bo
  • Hu, Hao
  • Li, Yixuan

Abstract

Because artificial intelligence (AI) is deeply integrated into urban governance systems, educational resource allocation is undergoing profound structural transformation. Using panel data from Chinese prefecture-level cities spanning 2000–2023, this study systematically and empirically explores the multidimensional impacts, inherent mechanisms, and economic consequences of AI development on educational resource allocation. Notably, AI development has a significant structural effect on educational resource allocation, substantially increasing the scale of urban fiscal expenditure on education and the number of full-time teachers and promoting rational reductions in the number of schools, which drives the education system toward centralization and digital platforming. This is primarily achieved by enhancing local fiscal coordination capacity and attracting highly educated populations. Furthermore, this AI-driven restructuring of educational resources increases urban per capita GDP. This study underscores the pivotal role of AI in reshaping public resource allocation. Our findings provide significant theoretical support and practical references for resource-constrained regions to develop accurate, AI-enabled education policies, address imbalanced educational development, and promote educational equity and coordinated, sustainable regional development.

Suggested Citation

  • Yang, Bo & Hu, Hao & Li, Yixuan, 2026. "Intelligent revolution of educational resources: AI-driven reallocation effects and economic consequences," Finance Research Letters, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finlet:v:93:y:2026:i:c:s1544612325026807
    DOI: 10.1016/j.frl.2025.109431
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