Abstract: The rapid development and wide application of artificial intelligence technology will have an important impact on residents' consumption, but the direction and core mechanism of its impact on residents' consumption need to be further explored. Based on the theoretical discussion on how the development of AI affects consumption and its core mechanism, using panel data from 30 provinces in China from 2005 to 2020 to conduct an empirical test, it is found that the development of AI is indeed conducive to the expansion of China's residents' consumption, but the analysis of the intermediary effect of the existence of core mechanisms shows that the direct impact of AI development on China's residents' consumption is not obvious, However, the indirect path of influencing Chinese residents' consumption through heterogeneous technological progress is significant, and the specific intermediary effect of AI development through disembodied technological progress is greater than that through embodied technological progress. In order to give full play to the role of AI in consumption expansion and promote high-quality development in China, first, we should attach importance to the promotion effect of AI development on residents' consumption; Second, we should continue to increase the investment in the application of artificial intelligence; Third, we should especially increase investment in research and development of artificial intelligence.

Key words: artificial intelligence, household consumption, heterogeneous technological progress