Bridging the divide? Realizing urban-rural integrated development in the artificial intelligence era: Evidence from China

Urban-rural integrated development (URID) is vital for fostering sustainable economic growth and social stability. Therefore, whether Artificial Intelligence (AI) promotes or hinders this process is of great importance to both academics and policymakers. Using panel data for 277 cities in China from 2012 to 2021, this study examines the impact of AI on URID. The results show that AI significantly promotes URID: a 1-unit increase in the AI level corresponds to a 0.243-unit rise in URID. Grounded in Resource Orchestration Theory, this effect unpacks three primary channels: optimizing digital resource allocation, enhancing green innovation capabilities, and boosting entrepreneurial activity. Furthermore, the effect exhibits a significant positive spatial spillover. This research deepens the theoretical understanding of the relationship between AI and URID. It also provides a scientific basis for policies using smart technologies to promote the two-way flow of resources, empowering sustainable development across urban and rural areas. • AI significantly boosts urban-rural integration; a 1-unit AI rise yields a 0.243-unit. • We innovatively introduce Resource Orchestration Theory as its core framework. • AI’s effect works via optimizing resources, boosting green innovation and entrepreneurship. • AI’s impact on urban-rural integration shows a significant positive spatial spillover.