Using data of China's A-share listed firms from 2007 to 2023, this paper constructs an enterprise artificial intelligence (AI) level indicator via Python text analysis and empirically examines the impact of AI on enterprise production efficiency and its underlying mechanisms. The study finds that AI significantly improves enterprise production efficiency, and this conclusion remains robust after robustness checks and endogeneity treatments. Specifically, AI enhances production effi-ciency through two mediating channels: improving resource allocation efficiency (including capital investment efficiency and labor investment efficiency) and strengthening innovation capability; the degree of enterprise internationalization positively moderates these promotional effects. Heterogeneity analysis shows that AI boosts production efficiency more significantly in firms with high financing efficiency and labor-intensive firms. Further analysis reveals that the impact of AI on production efficiency exhibits a firm-size threshold effect and nonlinear characteristics. This paper provides compre-hensive empirical evidence for understanding the efficiency effects of AI application at the micro-firm level and offers insights for enterprises to optimize AI strategies according to their characteristics and pursue high-quality development.

Artificial Intelligence, Enterprise Production Efficiency, Resource Allocation Efficiency