Abstract: Artificial intelligence is the core driving force for promoting high-quality economic development. The application of artificial intelligence technology has a significant impact on the labor market. Based on the data of the listed companies on the Shanghai and Shenzhen A-share markets from 2007 to 2022, this paper conducts an empirical study from the perspective of labor demand side. The findings show that the application of artificial intelligence technology can significantly improve labor investment efficiency of enterprises, mainly by reducing redundant employment. From the perspective of the impact mechanism, artificial intelligence enhances the efficiency of corporate labor investment through three pathways: improving the level of human capital, inhibiting irrational decision-making by managers, and strengthening external supervision. The heterogeneity analysis indicates that in regions with abundant labor supply, low labor mismatch, and a favorable institutional environment, the application of artificial intelligence technology in enterprises has a stronger promoting effect on labor investment efficiency. Therefore, we should promote the deep integration of artificial intelligence with the real economy and improve the infrastructure for AI applications. AI technology should be leveraged to drive employment, optimize the skill structure of existing employees, and enhance the efficiency of labor utilization by enterprises. We should strengthen the construction of AI application channels, activate human capital, optimize decision-making, and enhance the effectiveness of external supervision.

Key words: artificial intelligence, labor investment efficiency, human capital, irrational decision-making, external supervision