Labor protection and corporate artificial intelligence technology innovation: A quasi-natural experiment based on the implementation of China's Social Insurance Law

This study exploits the implementation of China’s Social Insurance Law in 2011 as a quasi-natural experiment to examine the impact of labor protection on corporate artificial intelligence (AI) innovation. We find that the implementation of the Social Insurance Law significantly promotes corporate AI innovation by increasing AI-related R&D investment and improving the allocation of AI R&D personnel. Heterogeneity analyses reveal that this positive effect is stronger in regions with higher levels of financial development, better market institutions, and greater cultural development, as well as in highly competitive industries, high-tech manufacturing sectors, and firms with larger scale, higher profitability, and stronger cash flow stability. This study provides new evidence on the economic consequences of labor protection and offers policy implications for improving labor security systems and fostering corporate AI innovation.