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AI washing under media pressure: evidence from China

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  • Fu, Mengyu
  • Lu, Jianlin
  • Chi, Renyong

Abstract

AI washing has become a growing concern among the policymakers and public. Drawing on impression management theory, this study investigates how media pressure impacts AI washing. Using data on Chinese listed firms, we observe that media pressure drives firms toward AI washing practices, suggesting that when facing negative media coverage, firms are inclined to adopt symbolic gestures rather than substantive actions to protect their image. This positive relationship is more pronounced in firms with high reputations and limited financial resources. Mechanism tests indicate that media pressure leads to AI washing by heightening managerial myopia. Cross-sectional analysis reveals that negative reports from mainstream media and highly severe negative reports are more strongly associated with firms’ AI washing behavior. We also document that media pressure has an asymmetric and persistent influence on AI washing. Overall, this study reveals how media pressure influences AI washing and provides practical insights for improving AI regulation.

Suggested Citation

  • Fu, Mengyu & Lu, Jianlin & Chi, Renyong, 2026. "AI washing under media pressure: evidence from China," Journal of Business Research, Elsevier, vol. 214(C).
    • Handle: RePEc:eee:jbrese:v:214:y:2026:i:c:s0148296326002894
    DOI: 10.1016/j.jbusres.2026.116254
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