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Can executives' digital background develop the level of AI utilization in enterprises.

Ruichao Yu1, Linrong Wu2, Guiying Li1

  • 1School of Economic and Management, Guangxi Normal University, Guilin, GuangXi, China.

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|June 26, 2025
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Summary

Executives with digital backgrounds significantly boost enterprise artificial intelligence (AI) utilization. This effect is mediated by improved productivity and digital technology application, with stronger impacts in private and eastern region companies.

Keywords:
Application of digital technologyArtificial intelligenceExecutive digital backgroundHigh quality developmentTotal factor productivity

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Area of Science:

  • Business and Management
  • Information Systems
  • Economics

Background:

  • Digital talent is a critical asset for enterprise artificial intelligence (AI) development.
  • Firms strategically prioritize attracting and retaining talent with digital expertise.
  • Understanding the link between executive digital backgrounds and AI adoption is crucial.

Purpose of the Study:

  • To investigate the relationship between executives' digital backgrounds and enterprise AI utilization.
  • To identify the mediating mechanisms through which this relationship operates.
  • To explore heterogeneity in this relationship across different enterprise characteristics.

Main Methods:

  • Empirical analysis of Chinese A-share listed companies (2012-2022).
  • Regression analysis to assess the impact of digital backgrounds on AI utilization.
  • Mediation analysis to examine the role of total factor productivity and digital technology proficiency.
  • Heterogeneity analysis based on property rights, region, and technological capability.
  • Robustness checks using instrumental variables and Heckman two-stage method.

Main Results:

  • A higher proportion of executives with digital backgrounds positively correlates with increased AI utilization.
  • Executives' digital backgrounds enhance AI utilization by boosting total factor productivity and digital technology application proficiency.
  • The positive effect is more significant in private enterprises versus state-owned ones.
  • The impact of digital backgrounds on AI utilization decreases from eastern to central and western regions.

Conclusions:

  • Executives' digital backgrounds are a significant driver of enterprise AI adoption and utilization.
  • Total factor productivity and digital technology proficiency are key mediating pathways.
  • Contextual factors like enterprise ownership and region moderate the influence of digital backgrounds.
  • Findings offer theoretical insights and practical guidance for enhancing AI in businesses.