Pilot Zones for Innovative Application of Artificial Intelligence and Enterprise Innovation

Based on the panel data of Chinese A-share listed companies from 2012 to 2023, this paper takes the pilot policy of Pilot Zones for Innovative Application of Artificial Intelligence as an exogenous shock, and adopts a multi-period difference-in-differences (DID) model to systematically examine the causal effect of this policy on the quality and efficiency of enterprise innovation and its mechanism of action. It is found that the Pilot Zones for Innovative Application of Artificial Intelligence significantly improve enterprises’ innovation quality and efficiency. Mechanism tests show that the pilot policy enhances enterprise innovation quality and efficiency by driving digital transformation, eliminating information barriers, and upgrading supply chain collaboration. Heterogeneity analysis confirms that the policy dividends are more fully released in non-state-owned enterprises, high-tech enterprises, labor-intensive and technology-intensive enterprises, as well as enterprises located in cities with a higher degree of marketization. In addition, the life-cycle heterogeneity analysis shows that the pilot policy exerts the strongest and most comprehensive innovation-promoting effect on maturity-stage firms, mainly improves innovation efficiency for decline-stage firms, and does not produce significant effects for growth-stage firms. The findings offer practical insights for policymakers and local governments in refining AI-related innovation policies and pilot-zone implementation, and for enterprise managers in strategically adopting AI to strengthen innovation capability and long-term sustainable development.