Public attention directed toward artificial intelligence (AI) enhances corporate innovation in China, albeit with divergent effects in the short and long term. Specifically, increased public AI attention stimulates corporate innovation within a two-year window, but its influence diminishes beyond the third year. When public attention to AI rises, managers intensify their focus on AI and R&D activities, leading to greater investment in human capital and R&D expenditures, which in turn boosts innovation output. The effect is particularly pronounced among firms with higher innovation capabilities, state-owned enterprises, and capital-intensive firms. Furthermore, the innovation spurred by public AI attention contributes to improved business performance and sustainability—both immediate and prolonged—enhancing overall corporate value. Simply put, this study uncovers how to innovate and succeed in the era of AI and that managers positively respond to what the public thinks about AI being beneficial to company innovation and success.
Li et al. (Wed,) studied this question.