Customer artificial intelligence, supply chain spillover effects, and supplier capacity utilization

In the post-digital revolution wave where artificial intelligence (AI) is reshaping the landscape of supply chains, how enterprises can leverage AI to break through the dilemma of production capacity has become a focal point of current research. From the perspective of supply chain spillover, integrating stakeholder theory and signaling theory, we conducted an empirical analysis that using data from Chinese A-share listed enterprises. Our study reveals the chain spillover effect of customer AI on suppliers' capacity utilization. The study finds that customer AI significantly enhances suppliers' capacity utilization. Mechanism analysis indicates that customer AI exerts a spillover effect on suppliers’ capacity utilization by increasing production-side “flexibility” and improving demand-side “consumption efficiency.” This spillover effect is particularly pronounced in contexts where suppliers are entirely dependent on customers and where supply and demand exhibit high volatility. The study not only enriches the literature on AI and capacity utilization from the perspective of supply chain spillover but also provides practical guidance for addressing issues related to supply-demand balance and capacity utilization in the era of AI.