LAUSR

This study matches data from the China Family Panel Studies (CFPS) with data on the transformation to industrial artificial intelligence (AI) in cities to explore the effect of this transformation on workers' mental health and its underlying mechanisms in China. The findings show the following (1). The transformation to industrial AI effectively alleviates multiple mental health problems and improves workers' mental health (2). Work intensity and wage income play an intermediary role in the relationship between the industrial AI transformation and workers' mental health (3). Potential endogeneity problems in the relationship between industrial AI and workers' mental health are considered, and robustness tests are conducted (including changing the dependent variables, independent variables and regression models). The main results and impact mechanisms remain robust and reliable. This study extends the research on the relationship between industrial AI and workers' health, which has important theoretical implications. Additionally, based on the Chinese context, this research has important implications for the current AI transformation in developing countries. Transition economies with labor shortages can achieve a win-win situation by promoting industrial AI to fill the labor gap and improve workers' mental health.