Impact of artificial intelligence technology innovation on total factor productivity: an empirical study based on provincial panel data in China

Abstract

As the focus of the new round of technological revolution, it is crucial to explore the role of artificial intelligence (AI) technology innovation in improving total factor productivity (TFP). Based on the data from 30 Chinese provinces from 2003 to 2021, this article measured AI innovation using the number of patent applications and empirically investigated the effects of AI technology innovation on TFP. The results demonstrated that AI technology innovation exerts significantly positive influences on the TFP. The mechanism analyses revealed that AI technology innovation improves TFP by upgrading industrial structures and promoting human capital. The subsample results indicated that the promotion effect of AI technology innovation on TFP is significant only in areas with high levels of marketization, financial development, and digital infrastructure. The panel quantile regression results indicated that as the TFP increases, the promoting effect of AI technology innovation on TFP gradually strengthens. This study offers comprehensive empirical evidence for understanding the impacts of AI technology innovation on TFP, giving a reference for further enhancing the level of AI development and promoting a sustainable economic development.

Keywords

• total factor productivity
• artificial intelligence technology innovation
• sustainable economic development
• industrial structure upgrading
• human capital