DOI: 10.1515/econ-2025-0224 ISSN: 1864-6042

Digital Financial Inclusion and the Growth of Artificial Intelligence Enterprises: Evidence from China

Guangjin Chai, Xiaoyuan Pan
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Abstract

This study examines whether digital financial inclusion (DFI) is associated with the growth of artificial intelligence (AI) enterprises and through which potential channels this relationship may operate. Using panel data from 271 Chinese cities from 2013 to 2023, we construct a city-level measure of AI enterprise net growth based on firm registration records and AI-related keyword identification. The results show that DFI is positively associated with AI enterprise growth, and this relationship remains robust after addressing endogeneity concerns and conducting multiple robustness checks. The channel analysis provides suggestive evidence consistent with both supply-side and demand-side interpretations, including credit availability, professional labor allocation, and consumption demand. Dynamics decomposition analysis further shows that DFI is associated with more active enterprise entry and exit as well as a lower exit rate, suggesting dynamic adjustment within the AI enterprise ecosystem. Heterogeneity analysis indicates that this positive association is stronger in eastern regions and in cities with higher human capital, stronger innovation capacity, and larger population sizes. This paper provides an integrated “factor supply–market demand” framework for understanding how digital financial inclusion supports emerging technology enterprises.

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