The Impact of Artificial Intelligence on the Sustainable Development Performance of Chinese Manufacturing Enterprises

As a major driving force in the current technological revolution, artificial intelligence (AI)
has significantly accelerated the intelligence, automation, and informatization of enterprises,
thereby inevitably influencing the sustainable development performance (SDP) of
manufacturing enterprises. This study takes the “Next-Generation AI Innovation Pilot
Zone” policy as a case study and utilizes a multi-period difference-in-differences (DID)
model and machine learning techniques to investigate the impact of AI on the SDP of
Chinese manufacturing enterprises. The findings indicate that AI contributes to improving
the SDP of manufacturing firms. The mechanism analysis reveals that AI enhances
SDP via a green innovation effect, cost-saving effect, and digital transformation effect. The
moderation analysis further shows that the CEO duality inhibits the positive impact of AI
on SDP. The heterogeneity results based on the GRF model indicate that the positive relationship
between AI and SDP is pronounced in state-owned enterprises and heavily polluting
firms. This study not only enriches the literature on the micro-level environmental
effects of AI but also provides valuable insights for governments and businesses seeking
to improve SDP.