Artificial intelligence and corporate investment efficiency

This study examines the relationship between artificial intelligence (AI) adoption and corporate investment efficiency. Using an archival dataset of 28,911 firm-year observations from Chinese listed companies on the Shanghai and Shenzhen stock exchanges during 2011–2022, we find that AI adoption significantly improves corporate investment efficiency, with results remaining robust across multiple robustness tests and endogeneity checks. Mechanism analysis reveals that AI enhances investment efficiency by improving information transparency and strengthening internal control. Further moderating effect tests show that the positive impact of AI on investment efficiency is more pronounced in firms with executives possessing technical expertise, operating in highly competitive product markets, or situated in high-tech industries. This research contributes to the literature by elucidating how AI empowers corporate investment decision-making and provides practical implications for enterprises aiming to leverage AI technologies to optimize their investment performance.