ABSTRACT As a pivotal technology driving the latest wave of technological revolution and industry transformation, artificial intelligence (AI) is permeating the processes of business operations widely. Grounded in the dynamic capability theory, the research use Word2Vec and Python to extract metrics for AI technology from annual reports of Chinese A-share listed companies from 2012 to 2022. This research empirically investigates the impact of AI technology on the level of enterprise value creation. The findings reveal that the application of AI technology by listed companies significantly enhances their value creation, a conclusion that remains robust following various endogeneity and robustness tests. AI technology empowers enterprise value creation through the mechanisms of sensing, integrating, and restructuring digital agility. Furthermore, the value-creation effect of AI technology is more significant in manufacturing and the eastern region. The results elucidate the logic behind the influence of AI technology on enterprise value creation and provide practical support for organisations in implementing AI strategic planning and decision-making.