In this systematic literature review, the author explores the role of artificial intelligence (AI) as a strategic enabler of environmental, social and governance (ESG) performance and sustainable transformation. Drawing upon the resource-based, natural-resource-based views and theories of dynamic capabilities, stakeholding, institutions and information processing, this paper reviews and synthesizes the recent findings about AI-enabled environmental intelligence, social accountability, governance transparency, operational efficiency, green innovation and ESG assurance. The findings indicate that AI supports the ESG performance if it is adopted and used as an organizational capability rather than a technological tool or report. AI is able to help with the emissions forecasting, supply chain monitoring, stakeholder analytics, greenwashing detection, disclosure quality and board decision-making. However, these effects are conditioned by data governance, human supervision, explainability of processes, responsible AI, digital infrastructure and regulatory compliance. The paper proposes an AI-ESG Strategic Transformation Framework and develops testable research propositions for the future empirical study. In addition, the paper warns about potential ESG risks of AI. Therefore, this paper places AI-enabled ESG not as automated sustainability reporting but as an enabler of sustainable transformation.
Dr. Kajal Rameshbhai Solanki (Thu,) studied this question.
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