Artificial intelligence and corporate investment efficiency: Evidence from China

Liangcheng Wang and Yizheng Chen

Emerging Markets Review, 2025, vol. 68, issue C

Abstract: Artificial intelligence technology provides new solutions to management problems and plays an important role in investment decision-making. In this study, we explore the effect of artificial intelligence on corporate investment. Using a sample from China, we find that artificial intelligence improves corporate investment efficiency by enhancing internal control and ESG performance. This finding is particularly pronounced in firms with high artificial intelligence application proficiency and without state ownership. Finally, our findings demonstrate that AI could influence corporate investment decisions, encouraging firms to engage in risky investment behaviours. Our findings have implications for firms to adopt artificial intelligence to optimise investment.

Keywords: Artificial intelligence; Investment efficiency; Internal control; ESG performance; Investment decision (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:68:y:2025:i:c:s1566014125000639

DOI: 10.1016/j.ememar.2025.101314

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