Artificial intelligence technology innovation and firm productivity: Evidence from China

This study empirically examines the influence of artificial intelligence (AI) technology innovation on productivity using a sample of Chinese-listed companies. The results underscore that AI technology innovations can significantly enhance firms' total factor productivity. Moreover, while this positive impact is generalizable across firms, it is more pronounced in large-size enterprises, state-owned enterprises, and labor-intensive industries. Additionally, the mechanisms analysis reveals that cost reduction, increased utilization of highly skilled labor inputs, facilitation of digital transformation, and improvement in innovation efficiency are mechanisms through which AI technology innovation enhances productivity.