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Artificial Intelligence and Corporate Sustainability: Shaping the Future of ESG in the Age of Industry 5.0

Author

Listed:
  • Qiang Wang
  • Yulei Qi
  • Rongrong Li

Abstract

The growing concern about the disruptive potential of new technologies compels us to reconsider the impact of AI on sustainability. This study examines the development of AI within Chinese listed companies from two key perspectives: technology‐driven innovation and institutional responses, and analyzes their effects on corporate sustainability. The findings reveal that (i) AI significantly enhances corporate sustainability, particularly within the tertiary industry; (ii) both productivity and information transparency serve as positive mediators in this relationship; (iii) employee education plays a crucial role, with a higher proportion of employees holding bachelor's and master's degrees benefiting firms more significantly; (iv) at the institutional level, the degree of factor market development exhibits a notable heterogeneous effect, with cities having lower levels of factor market development showing a stronger contribution of AI to sustainability—likely due to the diminishing marginal effect of technology; and (v) proactive AI policies are instrumental in improving economic sustainability, underscoring the positive role of well‐targeted government intervention. This study offers both technical and policy insights for governments seeking to foster AI‐driven sustainability while ensuring that AI itself contributes to broader sustainable development goals.

Suggested Citation

  • Qiang Wang & Yulei Qi & Rongrong Li, 2026. "Artificial Intelligence and Corporate Sustainability: Shaping the Future of ESG in the Age of Industry 5.0," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(1), pages 1-26, February.
    • Handle: RePEc:wly:sustdv:v:34:y:2026:i:1:p:1-26
    DOI: 10.1002/sd.70200
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    Cited by:

    1. Nehir Balci & Beyza Gürel & Mustafa Reha Okur, 2026. "Turning Profit Into Sustainability: Evidence on Artificial Intelligence, Education, and Ecological Footprint," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(2), pages 2697-2724, April.
    2. Qiang Wang & Tingting Sun & Rongrong Li, 2026. "Artificial Intelligence for Alleviating Energy Poverty: Pathways Toward Sustainable and Renewable Energy Transitions," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(S2), pages 1324-1347, March.
    3. Fuyu Zhang & Rongrong Li & Qiang Wang, 2026. "How Does AI Technology Innovation Drive Carbon Emission Efficiency? A Machine Learning–Based Meta‐Frontier Analysis Across 75 Countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(1), pages 1310-1349, February.
    4. Qiang Wang & Liping Qi & Rongrong Li, 2026. "Can Technology Offset the Carbon Costs of Protectionism? The Role of Information and Communication Technology in Achieving SDG 13," Sustainable Development, John Wiley & Sons, Ltd., vol. 34(1), pages 469-492, February.

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