The Impact of Generative AI on Corporate Energy Intensity: Evidence from Chinese Listed Firms

The accelerated spread of generative artificial intelligence (GAI) is transforming firm-level production processes and performance outcomes, yet its implications for energy efficiency remain understudied. Using panel data on Chinese listed companies, this study examines how advances in GAI influence firms’ energy intensity (EI). The empirical evidence indicates that greater development of GAI is associated with a significant reduction in firms’ EI. Mechanism analyses reveal that GAI decreases EI by promoting firms’ human capital structure and dynamic capabilities. Furthermore, the negative relationship between GAI development and EI is larger when stronger informal environmental regulations are in place and for firms that have better internal environmental governance. This study extends prior research on the environmental implications of traditional AI and enriches the literature on GAI by moving beyond productivity and innovation outcomes. Our findings enhance the understanding of how dynamic technology evolution in AI reshapes the landscape of energy consumption and have important implications for efforts to improve energy efficiency under digital transformation.