The Impact of Artificial Intelligence Disclosure on the Performance of Commercial Banks in Vietnam

Artificial intelligence (AI) has become an important driver of digital transformation in the banking sector. Empirical research has predominantly focused on AI adoption and investment, while evidence on AI-related disclosure, its distinct dimensions, and the conditions shaping its association with bank performance remains limited, particularly in emerging economies. This study investigates the association between AI disclosure and the performance of Vietnamese commercial banks using panel data from 24 banks over the 2010–2024 period and the System Generalized Method of Moments estimator. The results show a positive and statistically significant association between AI disclosure and bank performance. Further analysis reveals that disclosure related to the practical application of AI in banking products, services, and operational processes is positively associated with performance, whereas disclosure emphasizing AI awareness and cybersecurity exhibits negative short-term associations. In addition, bank size and ICT readiness weaken the positive association between AI disclosure and bank performance, while no statistically significant moderating effect is detected for Basel III adoption. These findings suggest that the performance implications of AI disclosure depend on the nature of the disclosed AI activities and the institutional and technological conditions under which disclosure occurs. They also provide practical implications for banks and policymakers seeking to promote digital transformation and sustainable banking development in emerging economies.