Using 2012 to 2022 panel data of Chinese A-share listed firms, this study examines how the level of artificial intelligence (AI) affects firms’ internationalization performance, measured in terms of intensity, depth, and breadth. Grounded in dynamic capabilities and integrating Schumpeterian and Ricardian rents, we develop a three-stage sensing—seizing—reconfiguring framework. The results show that the level of AI technology significantly improves firms ‘internationalization performance, with effects robust to endogeneity and alternative specifications. Mechanism analyses indicate AI promotes internationalization by improving knowledge recombination, enhancing innovation quality, and easing financing constraints. Heterogeneity tests reveal stronger effects for firms with higher export technological complexity, non-state-owned firms, or in regions with lower digital financial development.