Artificial Intelligence Investment and Firms’ Market-Based Brand Influence

This study examines the relationship between AI investment and firms’ marketbased brand influence and the mechanisms underlying this relationship. Empirical models were constructed using panel data on Chinese A-share-listed firms from 2014 to 2023. Market-based brand influence is measured by market share, while AI investment is measured by the logarithm of firms’ AI spending. It was found that AI investment is positively associated with firms’ marketbased brand influence. For every 10% increase in firm AI investment, marketbased brand influence will increase by 0.338%. Corporate financial growth momentum is a mediating channel through which AI investment enhances brand influence. Financing constraints negatively moderate the relationship between AI investment and market-based brand influence. The positive association between AI investment and market-based brand influence is stronger among non-manufacturing firms. These findings empirically link AI-driven innovation to market-based brand outcomes and extend the literature on AI’s strategic value.