Abstract: Starting from the dual perspectives of efficiency improvement and coordinated development, and based on a deep understanding of the general purpose meta-technology characteristic of the new-generation artificial intelligence (AI) as a new form of productive force, this paper systematically explains the intrinsic theoretical mechanism through which AI influences the optimization of urban industrial structure, both in terms of heightening and rationalizing the structure, by improving resource allocation and enhancing the unbalanced innovation capacity across the primary, secondary, and tertiary industries. Using the phased establishment of the National New Generation Artificial Intelligence Innovation and Development Experimental Zones as a quasi-natural experiment, the study employs a staggered difference-in-differences (DID) approach for policy evaluation. The results show that the development of new-generation AI has promoted industrial structure heightening, but suppressed its rationalization. The mechanism analysis reveals that the disparity in effects arises because new-generation AI exacerbates the imbalance in innovation capacity between the three industries although it enhances resource allocation efficiency and overall innovation capacity. Heterogeneity analysis indicates that with the improvement of factors such as population mobility, digital inclusive finance, marketization, and the level of openness, new-generation AI can more effectively promote industrial structure heightening, while mitigating its suppressive effect on industrial structure rationalization. This paper provides an analytical framework for understanding the creative destruction effects of new-generation AI on industrial structure transformation and offers insights into the path of building a modern industrial system.

Key words: new generation of artificial intelligence, industrial structure optimization, general purpose technology, invention of a method of invention, staggered difference-in-differences