How does data sovereignty regulation in the AI era affect the financial system's risk resistance?

This study, based on provincial panel data from China covering the years 2009 to 2023, examines the impact of data sovereignty regulation in the era of artificial intelligence (AI) on the financial system's risk resistance capability, and analyzes the mediating role of intellectual property (IP) protection in this relationship. The results show that data sovereignty regulation significantly promotes the financial system's risk resistance capability; the strength of intellectual property protection plays a mediating role between data sovereignty regulation and the financial system's risk resistance capability; and the impact of data sovereignty regulation varies across provinces with different urban-rural income gaps, levels of economic development, and degrees of financial institutional development.