<p>This study investigates the relationship between artificial intelligence (AI) and senior management compensation in the United States from 2010 to 2021, mainly focusing on the mediating effects of financial performance, external analysts’ forecasts, and firm-level climate risks. We find that AI is positively associated with senior management compensation. Mechanism analyses further suggest that this positive association is related to firms’ financial performance, external analysts’ forecasts, and climate risks. To reinforce the robustness of our results, we employ alternative measures of our main variables and conduct supplementary analyses to mitigate potential endogeneity issues. Cross-sectional analyses further suggest that this positive association is more pronounced in certain firms and managerial roles. Overall, our findings provide firm-level evidence on the association between AI adoption and senior management compensation and contribute to the literature on AI and corporate governance.</p>