Artificial Intelligence Capability and Corporate Green Innovation: The Role of Knowledge Fusion and Technology Cooperation

This paper examines the relationship between firms’ artificial intelligence (AI) capability and corporate green innovation and the potential channels underlying this relationship. Using a firm-year panel of Chinese A-share firms listed on the Shanghai and Shenzhen main boards from 2002 to 2024, we find that stronger AI capability is positively associated with green innovation output, citation-based green innovation impact, and green technological knowledge breadth. Further mechanism analyses provide evidence consistent with knowledge fusion and formal technology cooperation as two potential channels. Specifically, stronger AI capability predicts greater technological overlap between firms’ AI and green patent portfolios and broader formal green technology cooperation in the subsequent year, including inter-firm cooperation and industry–university–research collaboration. Overall, the findings suggest that AI capability may help shape the knowledge generation and collaborative development processes of green innovation, potentially contributing to greater green innovation output, impact, and knowledge breadth.