Paper Number
ECIS2026-2287
Paper Type
SP
Abstract
Artificial intelligence (AI) has been increasingly integrated into business in firms. Extant research has investigated its impact on firm performance. However, empirical findings regarding AI’s effect on firm performance remain inconclusive. This study examines how AI usage shapes organizational financial and innovation performance at the collective level of firms. Firms’ AI use is measured using a text-based approach that captures AI-related disclosures in corporate annual reports. Using regression analysis of a panel data set of Chinese A-share listed firms from 2017 to 2024, the preliminary results indicate that AI use affect firms’ financial performance negatively and innovation performance positively. This study contributes to AI literature by uncovering the different effects of AI use on organizational financial and innovation performance. It also provides managerial insights into the performance implications of AI use at its early and/or medium stages and the need to balance the two performance outcomes when using AI.
Recommended Citation
Yang, Jie; Zhang, Puliang; Li, Hongxiu; and Seppanen, Marko, "The Impact Of Ai Use On Organizational Financial And Innovation Perforamnce" (2026). ECIS 2026 Proceedings. 16.
https://aisel.aisnet.org/ecis2026/is_adopt/is_adopt/16
The Impact Of Ai Use On Organizational Financial And Innovation Perforamnce
Artificial intelligence (AI) has been increasingly integrated into business in firms. Extant research has investigated its impact on firm performance. However, empirical findings regarding AI’s effect on firm performance remain inconclusive. This study examines how AI usage shapes organizational financial and innovation performance at the collective level of firms. Firms’ AI use is measured using a text-based approach that captures AI-related disclosures in corporate annual reports. Using regression analysis of a panel data set of Chinese A-share listed firms from 2017 to 2024, the preliminary results indicate that AI use affect firms’ financial performance negatively and innovation performance positively. This study contributes to AI literature by uncovering the different effects of AI use on organizational financial and innovation performance. It also provides managerial insights into the performance implications of AI use at its early and/or medium stages and the need to balance the two performance outcomes when using AI.