How does cultural diversity influence corporate AI development?

Rong Liu, Wenying Luo and Ruiqian Su

Finance Research Letters, 2025, vol. 81, issue C

Abstract: This study explores the impact of cultural diversity on corporate artificial intelligence (AI) development and its underlying mechanisms. Empirical analysis demonstrates that cultural diversity significantly enhances AI development within firms, primarily by fostering innovation. Heterogeneity analysis further reveals that this positive effect is more pronounced in firms with lower financial constraints, higher levels of marketization, and nonstate-owned enterprises. This study provides a fresh perspective on the intersection of cultural diversity and corporate technological innovation, offering valuable policy insights for promoting AI adoption and advancement in firms.

Keywords: Cultural diversity; Artificial intelligence; Corporate innovation (search for similar items in EconPapers)
JEL-codes: M14 O31 Z10 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007652

DOI: 10.1016/j.frl.2025.107506

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