AI-Enterprise ESG Synergy

This chapter examines the integration of AI into the ESG framework, analyzing how technological adoption reshapes firms’ ESG performance and how these effects vary across institutional and market environments. Drawing on data from 1270 listed firms in 187 Chinese cities between 2006 and 2019, the study finds that AI significantly improves enterprise ESG outcomes. The positive impact is especially salient for firms located in eastern and central cities, resource-based cities, high-tech industries, and state-owned enterprises (SOEs). Mechanism analysis suggests that AI enhances ESG performance by increasing analyst attention and accelerating digital transformation. Furthermore, higher levels of marketization and better business environments amplify the effectiveness of AI in improving ESG performance.