Despite well-documented impact of artificial intelligence (AI) on firm performance, the relationship between Generative AI and firms’ culture is not well understood. To fill this gap, we provide evidence on how exposure to Generative AI can shape corporate culture. We conduct this study in an international context comprising 5,049 firms between 2002 and 2023 from 27 developed and emerging countries using panel regressions. We find that the AI positively affects the corporate culture, i.e., AI can significantly impact the socio-cultural dynamics within organisations. This effect is more pronounced among firms characterized by a technology-oriented culture than among those with a people-oriented culture. Our additional analyses for each of the cultural dimensions show rigorous details for firms to focus on these dimensions. Furthermore, the findings show an inverted U-shaped relationship between firm age and corporate culture, suggesting that culture strengthens as firms mature but weakens beyond a certain point. These results cast doubt on the efficiency of AI for larger and smaller business as well as at various stages of business cycle, highlighting practical complexity for stakeholders and corporate policymakers to design their strategies for competitive advantage. Our findings are robust to several alternative specifications.