Beyond AI Narratives: AI Washing and Organizational Resilience

Artificial intelligence (AI) is widely viewed as a technological foundation for organizational resilience. Yet firms may strategically exaggerate their AI-related narratives without corresponding substantive investment. This study examines whether such AI washing is associated with lower organizational resilience. We conceptualize AI washing as a narrative–investment misalignment within organizational systems, in which symbolic AI claims move ahead of substantive AI investment and capability formation. Based on Chinese A-share listed firms during 2010–2024, we develop a firm-level AI washing index by comparing firms’ within-industry ranking in AI disclosure with their within-industry ranking in actual AI investment. AI disclosure is identified from annual reports using a large language model, while actual AI investment is measured through AI-related software and hardware investments. Using double-debiased machine learning, we estimate a significantly negative association between AI washing and organizational resilience. Economically, a one-standard-deviation increase in AI washing is associated with a decline in organizational resilience equivalent to approximately 3.276% of the average annual change in organizational resilience. This estimated pattern remains stable when we employ alternative variable constructions, replace the machine learning algorithms, adjust the cross-fitting folds, use propensity score matching, and further apply a deep instrumental variable strategy. Mechanism tests based on organizational legitimacy provide evidence consistent with legitimacy-related transmission channels, suggesting that AI washing is associated with lower resilience through weakened pragmatic, moral, and cognitive legitimacy under the maintained mediation assumptions. Further analysis reveals an asymmetric pattern: firms whose AI narratives exceed actual investment experience lower resilience, whereas firms whose actual investment exceeds external narratives exhibit higher resilience. The negative estimated association is particularly evident in high-tech industries, enterprises with established bank-firm ties, and enterprises with higher educational heterogeneity in their top management teams. This study advances research on AI disclosure and organizational resilience by showing that symbolic AI narratives can signal system-level fragility when technological claims are misaligned with substantive capability formation.