The impact of China's artificial intelligence development on urban energy efficiency

Energy efficiency has become a central concern amidst shifting global economic conditions, intensifying climate variability, and geopolitical tensions that have fundamentally reshaped energy consumption and production patterns. Improving energy efficiency is vital for addressing these challenges and advancing the United Nations sustainable development goals (SDGs). Artificial intelligence (AI) has emerged as a transformative tool in this context, offering innovative solutions to complex energy-related problems. While prior research has examined the energy impacts of digital technologies broadly, few studies have isolated the specific contributions of AI. Addressing this gap, our study investigates the influence of AI development on energy efficiency and explores the mechanisms by which AI drives this improvement. Using a fixed-effects model based on prefecture-level data in China, we find that AI significantly enhances energy efficiency. This effect is primarily mediated through two channels: (1) promoting green technological innovation and (2) facilitating the rationalization of industrial structures. Moderation analyses reveal that AI's positive impact is more pronounced in cities with strong informal environmental regulations and less significant in those with weaker oversight. Additionally, AI adoption yields greater efficiency gains in declining and regenerating resource-based cities compared to their growing and mature counterparts. These findings highlight AI's pivotal role in advancing energy efficiency and provide actionable guidance for policymakers. To fully realize these benefits, decision-makers should strengthen informal environmental governance and prioritize AI deployment in transitioning resource-based cities. Such measures can help address pressing global energy challenges and accelerate progress toward sustainable development.