Artificial intelligence orientation and decarbonization spillovers: evidence from Chinese listed firms

Artificial intelligence (AI) is increasingly promoted as a solution to corporate decarbonization, yet concerns persist that it may simply shift emissions along the value chain. This study examines how firms’ artificial intelligence orientation (AIO) relates to carbon emission intensity within the focal firm and across connected firms. Using large language models, we measure the AIO level of Chinese listed companies from 2010 to 2023. We find that stronger AIO is associated with lower carbon emission intensity. We further show that AIO is negatively associated with the carbon emission intensity of industry peers and upstream suppliers. These effects are linked to improvements in green innovation quality. Heterogeneity analyses indicate that AIO’s decarbonization effects vary systematically across climate risk, industry competition, and AI exposure.