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This study investigates the impact of AI finance on financing constraints of non-SOE firms in an emerging market.

Using a sample of non-SOE listed companies in China from 2011 to 2018, this research employs the cash–cash flow sensitivity model to examine the effect of AI finance on financing constraints of non-SOE firms.

We find that the development of AI finance can alleviate the financing constraints of non-SOE firms. Further, we document that such effect is more pronounced for smaller firms, more innovative firms and firms in developing areas.

This study suggests that emerging market countries can ease the financing constraints of non-SOE firms by promoting AI finance development.

This study, to the best of our knowledge, is the first one to explore the relationship between AI finance development and financing constraints of non-SOE firms in emerging markets.