Venture Capital and AI Transformation: Evidence from China's A-Share Listed Companies

In the era of rapid development of the digital economy, the implementation of AI transformation is regarded as a key means of enhancing corporate competitiveness. As a major driver of technological innovation, whether venture capital (VC) can facilitate the AI transformation of companies remains underexplored. This study analyzes a sample of non-financial A-share listed companies in China. The results show: (1) VC promotes AI transformation in companies; (2) Mechanism tests demonstrate that VC supports AI transformation by improving the company's financing structure and reducing short-term decision-making by management. (3) Heterogeneity tests show that the impact of VC in driving AI transformation is more significant in companies operating in high-tech industries and those with similar business models. (4) Economic consequence tests indicate that VC-driven AI transformation reduces performance volatility and enhances total factor productivity. The conclusions of this study offer corporate managers and policymakers a more detailed understanding of VC's role in promoting AI transformation in companies, providing both theoretical foundations and practical guidance for developing AI-supportive policies.