Artificial Intelligence as a Driver of Corporate Sustainability: Organizational Capabilities, Strategic Transformation and Future Challenges

Abstract

Artificial Intelligence (AI) has rapidly emerged as one of the most disruptive technologies shaping organizational transformation during the Fourth Industrial Revolution. Simultaneously, sustainability has evolved from a compliance-oriented activity into a strategic capability that influences competitiveness, innovation, corporate governance, stakeholder relationships, and long-term value creation. Although both research streams have developed extensively during the last decade, studies examining the interaction between Artificial Intelligence and corporate sustainability remain fragmented across multiple disciplines, including information systems, strategic management, environmental sciences, operations management, and sustainable development.

Recent advances in machine learning, deep learning, generative artificial intelligence, natural language processing, computer vision, and predictive analytics have significantly expanded the potential contribution of AI to sustainability. Organizations increasingly employ AI to optimize resource efficiency, reduce carbon emissions, improve circular economy practices, strengthen supply chain resilience, enhance ESG reporting, support sustainable finance, and facilitate data-driven decision making. At the same time, growing concerns regarding algorithmic bias, transparency, explainability, governance, energy consumption, and the environmental footprint of AI systems have generated increasing interest in concepts such as Responsible AI and Green AI.

This article provides a comprehensive literature review of the relationship between Artificial Intelligence and corporate sustainability based exclusively on studies published up to December 2023. Rather than considering AI merely as a technological resource, the paper proposes that Artificial Intelligence should be understood as a higher-order organizational capability capable of transforming how organizations sense, measure, predict, and manage sustainability challenges.

The review integrates theoretical perspectives from Strategic Management, Dynamic Capabilities Theory, the Resource-Based View, Stakeholder Theory, Digital Transformation, and Responsible AI to develop an integrated conceptual framework linking AI capabilities with sustainability performance.

The article also identifies major implementation challenges, discusses governance implications, and proposes future research directions for organizations seeking to leverage Artificial Intelligence to achieve long-term sustainable value creation.