Has Artificial Intelligence Promoted Manufacturing Servitization: Evidence from Chinese Enterprises

Abstract

Artificial intelligence, as a novel form of infrastructure with both generality and knowledge spillover characteristics, plays a crucial role in facilitating the profound integration of the manufacturing and service industries, and achieving economic transformation. This paper empirically investigates the impacts of artificial intelligence on the process of manufacturing servitization, utilizing merged data from the OECD-ICIOT (Organization for Economic Co-operation and Development, Intercountry Input-Output Tables) industry data, the Chinese industrial enterprise database, and the customs trade database. The empirical findings of this research demonstrate that artificial intelligence has significant and positive effects on manufacturing servitization. These positive effects primarily occur through two channels: enhancing total factor productivity and optimizing the labor skill structure. Furthermore, this study examines the variations in the impact of artificial intelligence on the transformation of embedded services and blended services. The analysis reveals that artificial intelligence significantly promotes the transformation of embedded services, while its impact on the transformation of blended services is comparatively less pronounced.