Artificial Intelligence and Green Innovation: A Pathway to Sustainable Business Practices

Abstract

Companies today face growing challenges in becoming sustainable. Sustainable business models help companies address environmental, social, and economic problems in creative and responsible ways. This study looks at how artificial intelligence (AI) supports sustainable business models, with a focus on the role of green innovation (such as eco-friendly technologies) in this process. A correlational research design, structural equation modelling (SEM) was applied to survey data collected from 118 senior managers and executives working in science and technology parks across Iran. The findings reveal that AI significantly strengthens both green innovation practices and sustainable business models. Furthermore, green innovation not only directly enhances sustainable business models but also acts as a mediator in the relationship between AI and long-term sustainability outcomes. This suggests a sequential relationship: AI adoption drives advancements in green innovation, which in turn enables organizations to reimagine their business models to align with global sustainability goals.