Artificial Intelligence Boosts Rural Residents’ Income Growth: Empirical Evidence from China

In China, whether the application of artificial intelligence (AI) can release the digital dividend and boost the income growth of rural residents is directly relevant to the realization of the rural revitalization strategy. Based on panel data from 31 Chinese provinces covering 2003 to 2023, this study employs the two-way fixed effects model, panel mediating effect model, grouped regression, and Fisher’s combination test to empirically examine the impact, underlying mechanisms, and heterogeneity of AI application on rural residents’ income growth. The results indicate that AI application significantly and positively promotes rural residents’ income growth, and this conclusion remains robust after a series of robustness tests. Mechanism analysis demonstrates that AI boosts rural income by optimizing agricultural industrial structure and empowering agricultural economic development. Heterogeneity analysis reveals that the income-enhancing effect of AI is stronger in western China, highly urbanized regions, non-major grain-producing areas, and regions with a higher level of agricultural modernization. This study provides empirical support for using AI to drive income growth among rural residents.