The value-creating potential of AI: A multi-dimensional analysis of effects and mechanisms

The integration of artificial intelligence in corporate operations has emerged as a transformative force in business landscapes, yet existing research provides limited insights into the mechanisms through which AI creates enterprise value. Drawing on a comprehensive dataset of Chinese listed companies spanning 2010–2022, this study investigates how AI adoption influences enterprise value through the mediating role of data assets and the moderating effect of managerial capability. Our analysis reveals that AI adoption significantly enhances enterprise value both directly and indirectly through data assets, demonstrating substantial mediation effects. The findings establish that managerial capability positively moderates this relationship, indicating that firms with stronger management teams extract greater value from AI investments. Through extensive robustness checks and endogeneity tests, we establish the causal nature of these relationships. Three heterogeneity tests reveal boundary conditions: the valuation premium is stronger for state-owned enterprises, disappears in heavily polluting industries unless AI is part of a credible green transition, and is evident only in non-asset-intensive firms where resource reconfiguration is agile. By integrating resource-based, dynamic-capability, and stakeholder perspectives, the study clarifies when AI becomes a genuine source of competitive advantage. The results inform executives that data governance, leadership development, and asset or environmental restructuring must accompany AI budgets, and they guide policymakers toward incentive designs that couple digital adoption with sustainability and capital-efficiency objectives.