Artificial Intelligence, ESG and Nation Brand: Pathways to Sustainable Development

This study explores how national AI capability relates to sustainable development through ESG outcomes and nation brand perceptions. Using the techno-economic paradigm and social capital theory, the research integrates two global AI indices with country-level ESG and Nation Brand Index data across 51–56 countries. Results show AI performance positively associates with ESG outcomes, which in turn strengthens nation brand perceptions especially in politically stable environments. The Tortoise AI Index demonstrates both direct and ESG-mediated links to nation brand, while the Oxford AI Readiness Index connects to nation brand primarily via ESG. A gap-based clustering identifies four national profiles (AI-dominant, ESG/NBI-dominant, balanced, and capacity-constrained) with corresponding strategic priorities. Overall, aligning AI deployment with ESG improvements, including climate action, social inclusion, and transparent governance, may enhance reputational standing and advance Sustainable Development Goals. The proposed framework offers policymakers a practical diagnostic tool, though findings should be interpreted cautiously given the cross-sectional, perception-based design.