The More the Artificial Intelligence, the Higher Firms’ Exploratory Innovation?

Whether firm can enhance exploratory innovation through AI adoption? In this study, we seek to answer this question by analyzing the effect of AI adoption from the perspective of knowledge and resources. With the sample of Chinese listed companies from 2015 to 2021, we propose and find a positive effect of firms’ AI adoption on their exploratory innovation. Further, we verify the substitution effect of firms’ external R&D collaborations and their AI adoption, and the moderating effect of high-tech industries. Results emphasize the value of AI adoption for firms and illuminate the importance of more advanced assessment of corporate AI adoption and its innovation strategies.