Does Artificial Intelligence Promote the Business Performance of Agricultural Enterprises
DOI:
https://doi.org/10.71222/ze0nf816Keywords:
artificial intelligence, agriculture, business performance, innovationAbstract
Artificial intelligence (AI) plays a pivotal role in advancing the development of agricultural enterprises and is essential for enhancing their business performance. This study empirically investigates the influence of AI on the operational performance of agricultural firms in China, drawing on data from A-share listed agricultural companies on the Shanghai and Shenzhen stock exchanges from 2003 to 2023. A fixed-effects model is employed to examine both the effects of AI and the underlying mechanisms. The empirical results show that AI significantly boosts the business performance of agricultural enterprises, with particularly pronounced effects among non-high-tech firms, non-heavy-pollution enterprises, and asset-intensive industries. AI also exerts a stronger positive impact on firms in their growth stage, whereas its effect on mature enterprises is not statistically significant. Mechanism analysis reveals that AI enhances performance by easing financing constraints, strengthening organizational resilience, and promoting collaborative R&D. Moreover, policy measures-such as government innovation subsidies-substantially amplify the positive impact of AI on firm performance. Based on these findings, the study recommends strengthening AI-driven technological innovation and application, designing differentiated policy measures tailored to the needs of various types of agricultural enterprises, enhancing complementary capabilities for smart transformation, and optimizing organizational structures to further unlock AI's potential in improving business performance.
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