How can AI application affect the enterprise carbon reduction performance?

As pivotal actors in the global pursuit of carbon neutrality, enterprises play a crucial role in climate governance through low-carbon transformation. Using a panel of Chinese A-share listed firms from 2009 to 2022, this study examines the impact of artificial intelligence (AI) application on enterprise carbon reduction performance (CRP). Our findings provide robust evidence that AI adoption significantly enhances enterprise CRP. Mechanism analyses reveal three main channels: promoting green innovation, improving environmental information disclosure, and alleviating financing constraints. Heterogeneity analyses show that the positive effect of AI application on enterprise CRP is more pronounced among state-owned enterprises, high-polluting firms, technology-intensive industries, and companies located in regions with stricter environmental regulations. These findings offer novel insights into the role of digital technologies in supporting sustainable corporate transformation and provide policy guidance for aligning technological innovation with climate goals.