Does AI contribute to systemic risk reduction in non-financial corporations?

Wang-Zhe Han and Wanshan Meng

The Quarterly Review of Economics and Finance, 2025, vol. 100, issue C

Abstract: While the systemic risk of financial institutions has been frequently discussed, the equally systemically important non-financial corporations have received insufficient attention. We examine a sample of listed Chinese non-financial corporations from 2010 to 2022 and confirm that AI use in non-financial corporations reduces their systemic risk. This beneficial impact is more pronounced in non-state-owned corporations, corporations in the growth stage, and corporations in the economic expansion period. Subsequently, we attribute this result to three risk control channels: decreasing risk-taking levels, reducing default risk, and weakening credit risk contagion. The research extends the understanding of systemic risk to non-financial corporations, providing new insights for balancing technological upgrading with achieving economic stability.

Keywords: Artificial intelligence; Systemic risk; Non-financial corporations; Risk control ability (search for similar items in EconPapers)
JEL-codes: D21 G30 O33 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:100:y:2025:i:c:s1062976925000146

DOI: 10.1016/j.qref.2025.101973

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