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AI-enabled information processing capability as drivers of firm resilience: Insights from information processing mechanisms

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  • Lu, Xingwei
  • Wu, Fan
  • Xu, Xianhao
  • Liu, Yan
  • Li, Youzhu

Abstract

Leveraging artificial intelligence (AI) to enhance firm resilience has become a critical strategy in uncertain environments. This study conceptualizes AI-enabled information processing capability as a firm's capacity to integrate AI technologies in order to improve information processing across organizational and supply chain processes. We develop a novel measurement approach based on large language models (LLMs) to analyze annual reports and operational data from 3819 Chinese listed firms. The empirical results indicate that AI-enabled information processing capability strengthens firm resilience through enhancing information efficiency, as reflected in the mitigation of the bullwhip effect, and improving information quality through greater supply chain transparency. These effects are more pronounced in non-state-owned firms and firms located in non-eastern regions. This study demonstrates how AI evolves from a technical tool into a systemic organizational capability and elucidates the information processing mechanisms through which AI drives firm resilience.

Suggested Citation

  • Lu, Xingwei & Wu, Fan & Xu, Xianhao & Liu, Yan & Li, Youzhu, 2026. "AI-enabled information processing capability as drivers of firm resilience: Insights from information processing mechanisms," Technological Forecasting and Social Change, Elsevier, vol. 230(C).
    • Handle: RePEc:eee:tefoso:v:230:y:2026:i:c:s0040162526002192
    DOI: 10.1016/j.techfore.2026.124742
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