<p>Conceptual framework.</p>

While their macro-level importance is well recognized, evidence on their impact on firm-level artificial intelligence (AI) development remains limited. This study addresses this gap by exploiting the staggered rollout of UHV transmission projects across prefecture-level cities as a quasi-natural experiment.

Using a multi-period difference-in-differences (DID) approach on a panel of Chinese listed enterprises from 2007 to 2023, this study finds that UHV transmission projects significantly promote enterprises’ AI development. The effect is stronger for non-state-owned enterprises, enterprises located in inland regions, enterprises with CEO-chair duality, and high-tech enterprises. Mechanism analyses show that UHV transmission projects enhance enterprises’ AI development by strengthening technological innovation, expanding enterprises’ organizational resource base, and improving regional financial development.