<p>Against the dual backdrop of deepening digital economic integration and rising corporate governance demands, artificial intelligence (AI) is becoming a key force reshaping corporate management. However, traditional internal control systems face limitations that make them increasingly inadequate. Although researches acknowledge AI’s role in enhancing internal control efficiency, analysis of its mechanisms and contextual heterogeneity remains insufficient. Using data from Shanghai and Shenzhen A-share listed companies from 2013 to 2023, the study provides empirical evidence that AI adoption significantly improves internal control efficiency. This result is robust to various endogeneity and robustness tests, including instrumental variable estimation and double machine learning. Mechanism analysis shows that AI adoption enhances internal control indirectly by promoting technological innovation, increasing information transparency, and reducing agency costs. Heterogeneity analysis further reveals that the positive impact of AI adoption on internal control efficiency is more pronounced in small firms, private firms, and firms in mature stages, as well as in regions with lower financing constraints and marketization level. Theoretically, the study deepens understanding of technology-enabled corporate governance. Practically, the study also offers evidence to guide firms in developing differentiated intelligent transformation.</p>