Abstract: Based on the data of A-share listed companies in China's Shanghai and Shenzhen stock markets from 2010 to 2023, this article empirically analyzes the impact and mechanism of artificial intelligence applications on corporate strategic differentiation, as well as its economic consequences. Research has found that the application of artificial intelligence significantly reduces the differentiation of enterprise strategies and exacerbates strategic convergence. Artificial intelligence applications mainly reduce enterprise strategic differentiation through promoting cognitive framework convergence, compressing product strategy differences, and intensifying operational configuration. In enterprises with state-owned assets, the application of artificial intelligence has a strong effect on reducing strategic differentiation. In enterprises with high levels of human capital and high business complexity, as well as regions with good manufacturing and digital economy foundations and sufficient digital economy policy support, the reduction effect of artificial intelligence applications on strategic differentiation is relatively weak, where enterprises can more effectively apply artificial intelligence to implement differentiation strategies and maintain strong strategic independence. Further analysis reveals that maintaining strategic uniqueness is helpful for enterprises to apply artificial intelligence to achieve value transformation.
