Challenge or hindrance? The impact of artificial intelligence applications on corporate environmental responsibility under policy and public pressures

Abstract

Given increasing environmental degradation and the growing emphasis on sustainable development, corporate environmental responsibility (CER) has become a crucial business strategy for consumers, investors, and society. This study explores the relationship between artificial intelligence (AI) applications and CER, while considering the moderating effects of climate policy uncertainty and public environmental concern, using data on A-share listed companies in China from 2012 to 2020. The results reveal an inverted U-shaped relationship between AI applications and CER performance. Climate policy uncertainty weakens the positive impact of AI on CER, while public environmental concern strengthens it. The findings provide valuable guidance for firms on how to strategically apply AI to enhance CER performance, which is substantially important for firms to adapt to policy and public pressure, and achieve sustainable development.