Do artificial intelligence (AI) technologies, through their enhancement of firms’ capacity to analyze data relevant to policymaking, enable broader engagement in corporate political activities (CPA), thus “democratize” CPA? We develop a theoretical framework to examine how AI shapes CPA, focusing on the overlap between AI’s capabilities and the underlying political capabilities that enable CPA. Drawing on dynamic capability theory, we categorize political capabilities into three types: political sensing, political access, and political exchange, each critical to a different stage of policymaking. We argue that AI enhances firms’ “know what” by facilitating their acquisition of knowledge in each political capability, potentially encouraging broader participation in CPA. However, AI does not directly strengthen activities within each capability that heavily rely on political connections—thus having a limited direct effect on enhancing firms’ “know who.” As a result, AI does not erode the advantage held by politically connected firms. These two aspects are interdependent, though, as AI’s enhancement of firms’ knowledge required for CPA helps politically connected firms more effectively and efficiently utilize their connections. This creates an additional pathway for connected firms to further strengthen their advantage by leveraging AI.
