AI-Driven Reduction in Enterprise Energy Intensity

This chapter investigates the effect of AI on firms’ energy intensity (EI) using data from China’s listed manufacturing firms between 2011 and 2019. The results indicate that AI adoption significantly reduces EI. The effect is particularly pronounced in energy-dependent firms, nonlabor-intensive firms, and SOEs. Mechanism analysis reveals that AI reduces EI primarily by fostering technological innovation and advancing digital transformation. The study also highlights that the business cycle, industry concentration, and environmental regulations condition the extent to which AI mitigates EI.