Artificial intelligence (AI)-driven green innovation has become a central topic in the green transition of contemporary economies. However, extant literature lacks a comprehensive examination of how firms overcome innovation resource constraints when leveraging AI to drive green innovation. Utilizing patent data and financial metrics from Chinese A-share listed firms during 2007–2023, this study probes the identified issue through an empirical lens. Empirical results show that industry-university-research (IUR) digital innovation collaboration significantly enhances firms' AI-driven green innovation, with the supplementation of the firm's innovation resources acting as a crucial channel. The absence of regional incentive-based environmental policies amplifies this positive effect, whereas a lack of incentive-based digital policies and insufficiently stringent mandatory environmental regulations tend to attenuate it. This study broadens the firm-level comprehension of AI-driven green innovation and offers practical implications for firms pursuing technology-driven sustainability. • IUR digital innovation collaboration promotes AI-driven green innovation. • The supplementation of firms' innovation resources is a key mechanism. • Absent environmental incentives amplify IUR digital innovation synergy. • Absent digital incentives attenuate IUR digital innovation synergy. • Weak environmental mandates attenuate IUR digital innovation synergy.
Ju et al. (2026) studied this question.