Artificial intelligence and the innovation quality of manufacturing firms

Purpose Artificial intelligence (AI) plays a crucial role in the innovation of manufacturing firms. This research aims to investigate the impact mechanisms of manufacturing firms’ innovation quality in the context of AI. Design/methodology/approach Based on unbalanced panel data of listed manufacturing firms from 2017 to 2023, this research examines the impact of AI on manufacturing firms’ innovation quality and tests the mediating role of innovation network embeddedness and the moderating role of knowledge diversity. Findings It is found that AI has a positive impact on the innovation quality of manufacturing firms. The structural embeddedness and relational embeddedness of manufacturing firms in innovation networks mediate the relationship between AI and innovation quality. The knowledge diversity of manufacturing firms positively moderates the impact of AI on innovation quality. Originality/value This is one of the first studies that investigates the impact mechanisms of AI on manufacturing firms’ innovation quality. The findings can add to the understanding of how AI shapes the innovation of manufacturing firms.