This study investigates the impact of Artificial Intelligence (AI) on traditional firms, specifically examining how scalable network properties and the integration of Environmental, Social, and Governance (ESG) considerations affect financial margins, sustainability, and bankability. The research addresses the core question of how AI investments can drive economic value by enhancing EBITDA and financial stability while aligning firms with sustainability goals. Using advanced network theory and multilayer models, the study reveals that AI-driven scalability significantly improves a firm's financial performance, making it more attractive to investors and financial institutions. Additionally, the integration of ESG factors further enhances operational efficiency, market valuation, and long-term financial stability. The study introduces an innovative "with-or-without" analysis to quantify the comparative benefits of AI and ESG integration, underscoring the role of these technologies in driving sustainable growth and addressing bankability concerns in traditional firms. This comprehensive approach offers new insights into the evolving dynamics of AI, ESG, and corporate finance.
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Visconti et al. (2024) studied this question.
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