Does AI Application Enhance Corporate ESG Performance? The Role of Human Capital Structure

Existing research has focused chiefly on the impact of artificial intelligence (AI) on economic growth. This study developed an AI dictionary using machine learning methods. Based on data from 3646 Shanghai- and Shenzhen-listed A-share companies from 2011 to 2022 and a panel mediation effect model, the relationships between AI application, human capital structure adjustment, and corporate ESG performance were examined. Theoretical research suggests that when corporates adopt AI, demand for high-skilled labor will increase while some low-skilled positions will be replaced. This leads to optimization of the human capital structure, which in turn improves corporate ESG performance. The results of the mechanism examination show that enhancing corporate ESG performance through AI use is achieved by modifying the human capital structure. Analysis of heterogeneity finds that for non-state-owned, large-sized, and non-technology-intensive corporates, the impact of AI applications on corporate ESG performance is more pronounced. This research further deepens the understanding of AI’s role in the corporate governance process at the micro-corporate level and offers suggestions to promote the development of AI technology.