Artificial Intelligence (AI) & Green Innovation Boost Environmental Performance

In the face of mounting environmental challenges, businesses are increasingly seeking sustainable pathways to achieve carbon neutrality. This study explores how AI-enabled green business strategies enhance environmental performance through green process innovation. As industries strive to align with global sustainability goals, integrating artificial intelligence (AI) into green initiatives presents a transformative opportunity.

The study is driven by the urgent need to understand whether AI-driven sustainability efforts lead to tangible improvements in carbon reduction and environmental performance. While companies worldwide are investing in green technologies, the extent to which AI can amplify these efforts remains underexplored.

By examining the interplay between artificial intelligence (AI), green process innovation, and sustainability outcomes, this research provides valuable insights for businesses seeking to optimize their environmental impact. Using a robust empirical approach, the study analyzes data collected from organizations actively integrating AI into their sustainability strategies.

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The findings reveal that AI-powered green process innovations significantly enhance environmental performance, helping firms reduce emissions and optimize resource efficiency. However, a paradox emerges—while AI-driven solutions promote sustainability, they also introduce new complexities, such as increased energy consumption for AI operations.

This duality poses a strategic challenge for corporations aiming to balance digital transformation with ecological responsibility. From a corporate perspective, this research underscores the strategic importance of AI in sustainability-driven decision-making. Businesses must carefully navigate the trade-offs between AI’s environmental benefits and its operational costs.

The findings suggest that companies should invest in AI tools that optimize green innovation while simultaneously adopting energy-efficient AI models. Additionally, policymakers and industry leaders must foster collaborative efforts to develop AI frameworks that maximize sustainability outcomes.

The implications extend beyond corporate boardrooms to society at large. AI-enabled green business strategies have the potential to drive systemic change, accelerating global carbon neutrality goals. By leveraging AI for predictive analytics, resource optimization, and process automation, industries can significantly reduce their carbon footprint while enhancing profitability.

However, ensuring that AI itself operates sustainably remains a critical challenge that demands further exploration. This study offers a forward-looking perspective on AI’s role in green business strategies, emphasizing that technological advancement and environmental responsibility must go hand in hand. As industries navigate the complexities of digital sustainability, integrating AI-driven innovation with a holistic environmental approach will be key to long-term success.

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The full research paper can be accessed here:  Chotia, V., Cheng, Y., Agarwal, R., & Vishnoi, S. K. (2024). AI-enabled Green Business Strategy: Path to carbon neutrality via environmental performance and green process innovation. Technological Forecasting and Social Change, 202, 123315. https://doi.org/10.1016/j.techfore.2024.123315

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