Artificial Intelligence and risk taking in business

2026

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AI-generated summary

This paper investigates how AI adoption impacts bank risk-taking and stability, revealing that increased AI intensity is associated with greater risk and lower stability, particularly for banks with weaker financial buffers.

* Examines the relationship between AI adoption and bank risk-taking using data from major listed Chinese banks.
* Constructs an AI-intensity index based on agent adoption, cloud computing, and big data disclosures.
* Finds that higher AI intensity leads to greater earnings volatility and lower profitability, increasing financial fragility, especially for banks with weaker liquidity and funding.

Tags: Artificial Intelligence, Banking, Risk-Taking, Financial Stability, AI Adoption

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