The emergence of artificial intelligence (AI) has significantly reshaped the business landscape, yet few studies have investigated the influences of AI on firm’s internationalization strategies (IS). Based on the organizational learning theory, we theorize AI as an intangible asset that serves as an effective tool for intra-organizational learning but cannot be transferred conveniently and stably through inter-organizational acquisitions. By tracing 1,889 international entries made by Chinese multinational enterprises (MNEs) between 2003 and 2020, we find that MNEs with AI capabilities are more likely to choose greenfield investments over acquisitions. Moreover, the positive relationship between multinational diversity and the adoptions of greenfield investments becomes weaker if the focal MNE possesses stronger AI capabilities. The study contributes to IS literature by identifying the special impacts of AI on the choices of MNEs’ international establishment modes.
