AI and Digitalization in Manufacturing: Impacts on Enterprise Operational Performance

Abstract

This study examines the impact of artificial intelligence (AI) and digitalization on the operational performance of manufacturing enterprises, with a focus on the Chinese automotive tire industry. Using a mixed-methods approach, we analyzed financial reports, conducted executive interviews, and applied structural equation modeling to data from three leading enterprises from 2022 to 2024. The results show that enterprises with higher levels of AI and digitalization—such as Enterprise A with a 22.3% annual growth in digital investment—achieved significant improvements in operational performance. Specifically, each unit increase in digitalization level correlated with an 8% rise in Return on Assets (ROA). Enhanced digitalization also positively affected production and R&D performance, reducing R&D cycles by 22.8% annually and cutting per-project costs by 27.1%. These findings underscore the critical role of AI and digitalization in driving innovation and operational efficiency in manufacturing.