The Impact of Artificial Intelligence on Firm Performance: Disruptive Threat or Strategic Enhancement?

Abstract

As artificial intelligence (AI) technology is increasingly integrated into business operations, its impact on firm performance has garnered significant attention from the academic community. This study reviews 37 peer-reviewed articles, following the PRISMA 2020 guidelines, to explore the effects of AI on firm performance, with a particular focus on identifying performance dimensions and industry heterogeneity. These articles are sourced from leading Chinese and English academic databases, including Web of Science, Scopus, and CNKI. The review categorizes performance outcomes into three main dimensions: financial performance (78.4%), innovation performance (16.2%), and productivity (5.4%). Most studies indicate a significant positive correlation between the adoption of AI and improvements in firm performance. However, the results also highlight significant heterogeneity across different industries, with manufacturing and technology-intensive sectors showing more consistent benefits, while service and traditional industries exhibit mixed performances. Overall, AI can enhance performance but may also exacerbate disparities, depending on factors such as industry characteristics, firm size, and digital maturity. Based on these insights, this study recommends policies such as subsidies for SMEs, talent development, and regional infrastructure to support broader AI adoption. It also offers practical strategies for enterprise transformation and highlights the need for future empirical and longitudinal research.