Impact of artificial intelligence innovation on food company performance

Abstract

The extent to which the food sector, as a traditional industry, can benefit from artificial intelligence (AI) innovation remains an open question. Using panel data from Chinese A-share listed food companies from 2010 to 2023, this study examines the impact of AI innovation on food companies' value. Our findings indicate that AI innovation significantly enhances food companies' value, and this conclusion remains robust after addressing endogeneity and conducting various robustness tests. Mechanism analysis reveals that AI innovation contributes to higher market capitalization, improved operational efficiency, and strengthened market power. Further analysis demonstrates that the positive impact of AI innovation is more pronounced in markets with higher concentration and is particularly significant for food companies in the manufacturing sector. Additionally, AI-generated inventions innovations have a stronger effect on increasing firm value compared with AI non-AI invention innovations.