New research by Zhou Xinyu and colleagues reveals that corporate artificial intelligence innovation significantly improves ESG performance, though its effects vary across dimensions. Published in the Journal of Business Research, the study demonstrates that while AI innovation substantially enhances governance and social outcomes, its environmental impact remains limited.
The research analyzed Chinese listed firms using multiple patent metrics, finding that both enhancing and substitutive AI patents contribute to ESG gains. Through a quasi-natural experiment and mechanism analysis, the team identified three key pathways: expanded AI talent recruitment, improved employee rights awareness, and enhanced information transparency.
Notably, AI-driven ESG improvements prove substantive rather than superficial - companies show reduced greenwashing tendencies, fewer regulatory violations, and less negative media coverage. The study distinguishes between mere technology adoption and genuine innovation, clarifying how AI capabilities translate into credible sustainability outcomes.
Further Insights:
AI innovation reduces corporate "greenwashing" tendencies, regulatory violations, and negative media coverage — confirming that AI-driven sustainability benefits are substantive rather than superficial. By distinguishing between "technology adoption" and "technological innovation," this research clarifies the conditions and pathways through which AI capabilities translate into credible ESG outcomes.
Journal of Business Research is classified as a Tier B+ journal in the Wuhan University Economics and Management School academic journal grading system.
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//www.sciencedirect.com/science/article/abs/pii/S0148296325005612
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