From Intelligence to Creativity: Can AI Adoption Drive Sustained Corporate Innovation Investment?

Artificial intelligence (AI) technology has brought unprecedented impact and opportunities for the sustainable development of family firms. This paper examines the impact of AI on innovation investment in family firms using a sample of Chinese A-share listed family firms from 2007 to 2024. The results show that AI significantly promotes innovation investment in family firms to achieve sustainable development. Mechanism analysis shows that AI enhances both the willingness and capability of family firms to invest in innovation by improving their risk-taking levels and resource allocation efficiency, thereby promoting innovation investment. Heterogeneity analysis shows that the promotion effect of AI on innovation investment of family firms is more significant in smaller family firms, those directly founded by families, those with more family involvement in management, and those prior to intergenerational succession. Furthermore, the study finds that AI significantly improves the innovation performance of family firms. Our findings provide important theoretical and practical guidance for enterprises seeking to leverage AI to catalyze innovation investment and thereby achieve long-term value growth and sustainable development.