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Artificial Intelligence and Enterprise Technological Innovation: Evidence From China

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  • Yang Zhang
  • Yuexian Chang
  • Xiaolei Zhang
  • Haoyu Zhou

Abstract

This paper investigates the impact of artificial intelligence (AI) on the technological innovation (TI) of enterprises and explores its mechanisms of action based on data from Chinese enterprises. This study finds that AI significantly promotes enterprise TI. The reliability of these conclusions is validated through instrumental variable regression and robustness tests. Key mechanisms through which AI enhances enterprise innovation include total factor productivity (TFP) improvement, human capital structure optimization, and digital transformation. The level of internal R&D focus within enterprises plays a positive moderating role in the incentive effects of AI on TI. AI can not only enhance the quantity of technological innovation but also promote the diffusion of technology. Enterprises in the service industry exhibit stronger effects. Therefore, it is recommended that governments increase support for AI technologies, promote the integration of traditional industries, and improve talent training mechanisms. This would allow AI to play a more positive role in fostering enterprise TI and driving high‐quality economic development.

Suggested Citation

  • Yang Zhang & Yuexian Chang & Xiaolei Zhang & Haoyu Zhou, 2025. "Artificial Intelligence and Enterprise Technological Innovation: Evidence From China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(7), pages 4056-4069, October.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:7:p:4056-4069
    DOI: 10.1002/mde.70002
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