Artificial intelligence technology readiness for social sustainability and business ethics: Evidence from MSMEs in developing nations

Social, economic, and environmental development together contributes to sustainable development. Social sustainability (SS) is essential to create just and inclusive societies where people's basic needs are satisfied, human rights are protected, and social cohesion and fairness exist. To achieve holistic, sustainable development, policymakers and management must consider SS and environmental and economic considerations. Employees' social and behavioral interactions impact SS and business ethics. Micro, small, and medium enterprises (MSMEs) can learn from artificial intelligence (AI) for better decision-making, operational optimization, increased employability, and employee empowerment. Therefore, this research aims to assess how artificial intelligence technology affects SS and business ethics in the MSMEs. We studied the artificial intelligence (AI) readiness among MSME companies in developing nations. We analyzed AI readiness using the theory of technology-organization-environment (TOE). Further, we also studied AI readiness and its influence on business ethics and SS, which we measured through skill development, work conditions, environment, and safety among MSMEs. We collected the data from 236 MSME employees. We used Structural Equation Modeling using SmartPLS software for data analysis. The research findings indicated that AI readiness directly impacts SS. We also found that the findings directly impact employees' social and ethical behavior. We also observed that business ethics significantly affects SS, indicating partial mediation. This study has substantial theoretical and managerial implications as policymakers and MSME leadership need to consider SS an essential component of sustainable development.