Artificial intelligence and corporate risk-taking: Evidence from China

The deep integration of artificial intelligence (AI) into enterprises presents both opportunities and challenges, making it a focal point of current research. This study explores the impact of AI on corporate risk-taking, using data spanning 2010-2019 from A-share listed companies in China. Our findings suggest that AI significantly heightens companies' level of risk-taking. Furthermore, financing constraints can amplify the relationship between AI and risk-taking, enhancing their sensitivity correlation. AI also significantly improves firms' investment efficiency and mitigates their underinvestment issues. Finally, mediation tests indicate that AI enhances risk-taking by diminishing firms' risk perception. Overall, we offer valuable insights into and references for accelerating the deep integration of AI into enterprises. (c) 2024 Sun Yat-sen University. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).