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Impact of artificial intelligence technology on industrial modernization -an empirical study from policy evaluation perspective

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  • Gong, Yanbing
  • Shen, Keyue

Abstract

In recent years, various countries have formulated a series of policies to guide the research, development, and application of AI. AI policies have demonstrated great potential in promoting the development of a modern industrial system. This study takes the policy of the China Artificial Intelligence Innovation and Application Pilot Zone (AIIAPZ) as a quasi-natural experiment. Based on the panel data of 30 provinces in China from 2011 to 2022, it empirically examines the impact of the AIIAPZ policy on IM and its mechanism. The conclusions are as follows: (1) The overall IM level of China has been increasing year by year, but there are differences among provinces, presenting the characteristic of“high in the east and low in the west”. (2) The AIIAPZ policy has significantly improved IM level of each province and has passed parallel trend tests, placebo tests, PSM-DID tests. (3) The AIIAPZ policy promotes IM by accelerating the penetration of industrial robots, enhancing regional technological innovation level, and reducing the mismatch level of factor market. (4) The AIIAPZ policy has different impacts on provinces with different market environment, enterprise structure and industrial structure. The promoting effect is more significant in provinces with strong markets, low state-owned capital and manufacturing-oriented regions. The conclusion of this study provides a reference for decision-makers to scientifically formulate AI-industrial policies and promote the construction of a modern industrial system.

Suggested Citation

  • Gong, Yanbing & Shen, Keyue, 2026. "Impact of artificial intelligence technology on industrial modernization -an empirical study from policy evaluation perspective," Technology in Society, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:teinso:v:86:y:2026:i:c:s0160791x26001053
    DOI: 10.1016/j.techsoc.2026.103316
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