Abstract

Against the backdrop of frequent global shocks and increasingly complex supply chain networks, supply chain disruption risk exposure has become a major challenge affecting firms’ operational stability and sustainable competitive advantage. Meanwhile, generative artificial intelligence is being increasingly embedded in business operations and has demonstrated strong application potential in information processing, risk identification, and decision support. Based on data from Chinese A-share listed firms from 2017 to 2024 and using text measures based on Management Discussion and Analysis (MD&A) disclosures of Generative AI application and supply chain disruption risk exposure, this study examines the relationship between Generative AI application and corporate supply chain disruption risk exposure, and further explores the channels through which this relationship may operate from the perspective of risk governance transformation. The results show that Generative AI application is significantly associated with lower corporate supply chain disruption risk exposure, and this relationship remains robust across a series of robustness checks and supplementary endogeneity analyses. Channel analyses suggest that this relationship may be related to firms’ risk governance transformation, mainly reflected in enhanced risk identification capability, improved resource allocation capability, and strengthened collaborative response capability. Heterogeneity analyses show that this association is more pronounced among firms facing higher environmental uncertainty, manufacturing firms, and firms located in cities with lower entrepreneurial vitality. This study provides text-based firm-level evidence for understanding the relationship between Generative AI application and supply chain risk governance, and offers managerial implications for firms seeking to promote scenario-based Generative AI application and enhance supply chain resilience and risk governance capability.

IPC Classification

Keywords