Impact of artificial intelligence on entrepreneurial activity -empirical evidence from Chinese cities

ABSTRACTThis paper presents an investigation of the impact of artificial intelligence (AI) on entrepreneurial activity (EA) using panel data from 284 Chinese cities over the period 2010–2019. The study finds that AI has a positive and significant effect on EA, and this result remains robust after conducting a series of tests, including the endogeneity test, the exogenous shock test, and the robustness test. The study also conducts mechanistic and heterogeneity tests, which show that AI promotes technological innovation and drives consumer demand, leading to a positive effect on EA. Moreover, the entrepreneurial effect of AI is more significant in the eastern region, in regions with net population inflows, and in the service sector. These findings provide insights into the entrepreneurial impact of AI, and suggest the need to strengthen the top-level design and application of AI in the entrepreneurial system.JEL: M13L26R12KEYWORDS: Artificial intelligenceentrepreneurial activityChinese citiesmechanism testing Disclosure statementNo potential conflict of interest was reported by the author(s).Additional informationFundingThis work was supported by the National Social Science Fund of China [grant number 18BJY180].Notes on contributorsKaixuan ChenKaixuan Chen is a current PhD student at the School of Economics and Management, Northeast Normal University. His research interests include: artificial intelligence applications, smart manufacturing and entrepreneurship. Address: No.2555 Jing Yue Street, Changchun City, Jilin Province, China. China. Email: chenkaixuan666@nenu.edu.cn.Shushan ZhangShushan Zhang (Corresponding author) is a professor at the School of Economics and Management, Northeast Normal University, where his research interests include intelligent logistics and supply chain management. His research was published in JOURNAL OF BUSINESS & INDUSTRIAL MARKETING. Email: zhangss591@nenu.edu.cn.