Can AI applications boost green consumption? Experience from China

Purpose Artificial intelligence (AI) has been proved to be an important engine of green development, yet how it will affect the internal structure of green consumption is unknown. The aim of this study is to examine the impact and its mechanism of AI on green consumption from the internal structure perspective. Design/methodology/approach Based on the panel data of 276 prefecture-level cities in China from 2006 to 2023, the mediating effect model and the threshold effect model were used to verify the transmission mechanism of how AI applications affect green consumption. Findings The application of AI significantly enhances the level of green consumption, and there exists a nonlinear relationship between the two. Specifically, as the level of AI advances, the promotional effect of AI on green consumption exhibits a trend of first strengthening and then weakening. AI facilitates green consumption by boosting green consumption awareness and enhancing green supply capacity. AI plays a more prominent role in promoting green consumption in cities located in North China, East China and Southern China, as well as in large-sized cities. Originality/value This study has enriched the research on AI and green consumption, which is helpful to promote the development process of AI and accelerate the construction of green consumption lifestyle.