AI Development and Corporate Capital Allocation–Evidence from Shadow Banking

AI as a key driver of the new wave of technological revolution, is fundamentally reshaping corporate resource allocation. This study finds that AI development significantly promotes corporate shadow banking. Second, mechanism analysis shows that AI development increases corporate shadow banking by promoting data assetization and enhancing firms’ risk-taking. Third, heterogeneity analysis indicates that this positive effect is more pronounced among firms with higher ownership concentration, non-state-owned enterprises, high-tech firms, and labor-intensive firms. This study provides policy implications for improving AI governance and preventing systemic financial risks.