Does artificial intelligence improve the quality of export products? Evidence from China

ABSTRACTArtificial intelligence (AI) has revolutionized production methods through automated and intelligent manufacturing. Using Chinese A-share listed companies from 2007 to 2015, we conduct a variety of regressions and find that AI improves export product quality. Moreover, AI enhances export product quality by boosting resource allocation efficiency and information-processing abilities. Compared with the collaborative intelligent manufacturing mode, the quality-driver effect of AI is only significant in the production-based intelligent manufacturing mode. Our findings suggest that emerging countries should motivate their exporters to adopt intelligent manufacturing methods to enhance product quality.KEYWORDS: Artificial intelligenceexport product qualityresource allocation efficiencyinformation-processing abilityJEL CLASSIFICATION: O03O04D22 Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 The endpoint of our sample is explained by the absence of relevant export data after 2015. The start point of our sample is explained by the absence of relevant AI data before 2007.2 The detailed steps are reported in supplementary materials.3 The former captures the impact of time-invariant firm-product-destination attributes on firm-level import quality (e.g. distribution costs, trade costs, etc.), while the latter captures the influence of product-destination-year specific macro shocks on firm-level import quality.Additional informationFundingThe work was supported by the Zhejiang Provincial Philosophy and Social Science Planning Project [22NDJC015Z]; Department of Education of Zhejiang Province [Y202250353]; Major Humanities and Social Sciences Research Projects in Zhejiang higher education institutions, Grant/Award Number [2023QN093 2023QN094].