When Ambition Meets Hype: Why and When Does CEO Promotion Focus Affect AI Washing?

Why do firms engage in AI washing—the strategic exaggeration of artificial intelligence capabilities—and under what conditions is such behavior more likely? Drawing on regulatory focus theory and upper echelons theory, we examine how CEOs’ promotion focus, a core motivational orientation, shapes firms’ propensity for AI washing. We argue that CEOs with high promotion focus are more inclined to engage in symbolic AI disclosure as a form of strategic impression management. Moreover, adopting a regulatory fit perspective, we theorize that this effect is contingent on both internal and external contextual cues. Using panel data from Chinese GEM-listed firms between 2010 and 2021 and computer-aided content analysis, we find that CEO promotion focus is positively associated with AI washing. This effect is weakened when the CFO has a R&D background, but strengthened when investor attention to AI is high. By uncovering the motivational micro-foundations of AI washing, this study advances regulatory focus research into the domain of emerging technologies and highlights how executive psychology shapes symbolic versus substantive technological engagement.