The Impact of Artificial Intelligence on the Quality of Annual Report Disclosures

This study examines the impact of artificial intelligence (AI) application on the quality of information disclosure and its underlying mechanisms, using a sample of Chinese A-share listed companies from 2009 to 2023. The findings reveal a significant negative correlation between the level of AI application and the quality of information disclosure. This negative effect operates through a dual mediation mechanism, which involves increasing managerial optimism and decreasing the readability of annual reports. Further analysis indicates that the adverse effects of AI are more pronounced in state-owned enterprises, low-performance firms, and companies in regions with low levels of marketization. This research challenges the “technology neutrality” argument, highlighting how the interaction between AI's technological characteristics and agency conflicts leads to a reconstruction of the ethical boundaries of information disclosure. It provides valuable insights for the technological governance of emerging markets.