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This research aims to investigate how the AI economy influences the structure of consumption in China.

June 20, 2026Open Access

The Impact of Artificial Intelligence Economy on Consumption Structure Upgrading

Key Points

This research aims to investigate how the AI economy influences the structure of consumption in China.
Analyzed panel data from 30 provincial-level regions and microdata from A-share companies between 2015-2023.
Utilized a difference-in-differences (DiD) model to assess the impact of the 2017 AI Development Plan.
Explored mechanisms and heterogeneity using various demographic and economic factors.
AI economy significantly enhances consumption structure upgrading, particularly in service and high-quality product spending.
Technological innovation and servitization are key mediating factors, supported by digital infrastructure and consumer AI literacy.
Stronger effects observed in eastern regions, urban markets, and among middle-to-high-income groups, while weaker in central/western regions and low-income populations.

Abstract

Against the backdrop of deep integration between digital technology and the real economy, the artificial intelligence (AI) economy has become a core driver reshaping the consumption market and promoting consumption structure upgrading.Using panel data of 30 Chinese provincial-level administrative regions and microdata of A-share listed companies in the consumer sector from 2015 to 2023, this study takes the 2017 "Development Plan for a New Generation of Artificial Intelligence" as an exogenous policy shock to construct a difference-in-differences (DiD) model.It systematically explores the impact, mechanism, and heterogeneous characteristics of the AI economy on consumption structure upgrading.The results show that the AI economy significantly promotes consumption structure upgrading, with a particularly prominent role in boosting the proportion of service consumption and high-quality product consumption.Technological innovation and servitization transformation constitute the dual mediating paths, while digital infrastructure and consumers' AI literacy exert significant positive moderating effects.Heterogeneity analysis reveals that the impact is stronger in eastern regions, urban markets, and middle-to-high-income groups, but weaker in central and western regions, rural areas, and low-income groups.This study provides a new theoretical perspective for understanding consumption transformation in the AI era and empirical evidence for formulating differentiated policies to promote consumption upgrading and release the dividends of the AI economy.

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