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Technological empowerment: The pathways of artificial intelligence influencing corporate ESG performance

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  • Huang, Qianxuan
  • Gao, Li

Abstract

Drawing on data from Chinese A-share listed companies spanning from 2010 to 2023, this study develops an analytical framework termed "Technology-Innovation-Governance" to conduct an empirical investigation into how artificial intelligence (AI) influences corporate ESG (Environmental, Social, and Governance) performance. The results demonstrate that AI exerts a substantial positive impact on enhancing corporate ESG performance. Through mediation effect analysis, it is revealed that digital innovation and the quality of internal control serve as a two-pronged transmission mechanism. Heterogeneity analysis further uncovers that the boosting effect of AI on ESG is notably stronger in the eastern and central regions, as well as in technology-intensive sectors. Conversely, the influence in the western region and in labor/capital-intensive industries is relatively constrained, primarily owing to technological limitations. The research findings offer a technology-driven approach to facilitating corporate sustainable development in the digital economy age. They imply that policymakers ought to reinforce regional digital infrastructure, while enterprises should strive to integrate AI more deeply into business contexts to elevate their practical ESG capabilities.

Suggested Citation

  • Huang, Qianxuan & Gao, Li, 2025. "Technological empowerment: The pathways of artificial intelligence influencing corporate ESG performance," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325021051
    DOI: 10.1016/j.frl.2025.108855
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    References listed on IDEAS

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