Towards sustainable development: Can artificial intelligence development become an accelerator for Chinese corporate green investment?

The environmental impact of enterprise activities plays a critical role in achieving sustainable economic development. Against the backdrop of integrating artificial intelligence (AI) with clean production, this study investigates the influence and mechanisms of AI innovation and application on enterprises’ green investment. Using data from 4,319 listed companies across 16 heavily polluting industries in China’s Shanghai and Shenzhen A-share markets from 2011 to 2022, the findings reveal that AI development significantly enhances the level of green investment, with stronger effects observed in high-tech enterprises, state-owned enterprises, and companies led by executives with overseas experience. Mechanism analysis indicates that AI promotes green investment by reducing pollution emissions, easing financing constraints, and growing investor and media attention. Further evidence shows that AI has become a key driver of corporate green investment and an important channel for advancing sustainable development, thereby supporting the dual goals of AI advancement and low-carbon economic growth. The theoretical and empirical insights of this study offer valuable implications for understanding how AI development in China can accelerate green transformation and foster sustainable economic progress.