The Impact of Artificial Intelligence Adoption on Corporate Financial Performance: Evidence from Emerging Markets

Abstract

This article examines the impact of artificial intelligence adoption on corporate financial performance, with a particular focus on firms operating in emerging markets. As emerging economies increasingly integrate digital technologies into their business models, the relationship between AI investment and measurable financial outcomes remains an area of active debate. Through a systematic review of accounting, finance, and information systems literature, this study identifies the mechanisms through which AI adoption influences firm performance. The findings suggest that AI contributes to financial performance primarily through operational efficiency gains, enhanced revenue generation, improved decision quality, and superior forecasting capability. However, the realization of these benefits is conditioned by firm-level absorptive capacity, data infrastructure, managerial capability, and the broader institutional environment. The review also highlights significant challenges, including high implementation costs, skills shortages, data governance concerns, and the risk of technology-driven disruption to existing business models. In emerging markets, these challenges are often amplified by weaker digital infrastructure and less mature regulatory frameworks. The article concludes that AI adoption is a strategic imperative that can enhance financial performance, but its success depends on alignment with organizational capabilities and the effective management of implementation risks. Practical implications for managers, investors, and policymakers are discussed.