The impact of artificial intelligence adoption on Chinese manufacturing enterprises’ innovativeness: new insights from a labor structure perspective

Purpose

This research aims to investigate the impact of artificial intelligence (AI) adoption on the innovation dynamics of Chinese manufacturing enterprises, with a specific focus on the intricate interplay with the labor structure.

Design/methodology/approach

Leveraging panel data of listed companies from 2010 to 2022, this study employs the two-way fixed effects (TWFE) model to examine the influence of AI adoption on Chinese manufacturing companies' innovativeness. Firm-level AI adoption is measured by constructing a three-dimensional index of attention, application, and absorption.

Findings

The results indicate that (1) AI adoption positively impacts both internal innovation capability and external innovation interaction. (2) AI adoption has dual effects on manufacturing enterprises' labor education and skill structure. (3) Enterprises with a highly educated and skilled workforce exhibit a more substantial influence of AI adoption on innovativeness.

Originality/value

This research contributes to the academic and practical discourse by introducing new measurements of the AI adoption index and providing original insights into the impact of AI adoption on innovation interaction and labor structure within Chinese manufacturing. The findings emphasize the need for a highly educated and skilled workforce to navigate the complexities of AI-driven innovation, offering valuable theoretical and practical implications for policymakers and enterprises.