The relationship between artificial intelligence and environmental performance: the mediating role of external environmental factors

Abstract Despite the growing recognition of artificial intelligence in enhancing environmental performance, the pathways through which artificial intelligence influences environmental performance and the role of external factors, i.e., carbon emission strategies and sustainability regulations, in th...

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Main Authors: Muhammad Khalid Anser, Muhammad Naeem, Shoukat Ali, Sajid Ali, Rubab Javid
Format: Article
Language:English
Published: Springer Nature 2025-06-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-05199-8
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author Muhammad Khalid Anser
Muhammad Naeem
Shoukat Ali
Sajid Ali
Rubab Javid
author_facet Muhammad Khalid Anser
Muhammad Naeem
Shoukat Ali
Sajid Ali
Rubab Javid
author_sort Muhammad Khalid Anser
collection DOAJ
description Abstract Despite the growing recognition of artificial intelligence in enhancing environmental performance, the pathways through which artificial intelligence influences environmental performance and the role of external factors, i.e., carbon emission strategies and sustainability regulations, in this relationship are unexplored. Data were collected from 387 employees of small and medium enterprises in Pakistan. Our empirical analysis confirms a positive relationship between artificial intelligence use and environmental performance. The results also reveal that external factors mediate and intensify the association between artificial intelligence and environmental performance. These findings are aligned with dynamic capability theory, which suggests that artificial intelligence tools with external factors can enhance small and medium enterprises’ capabilities to achieve sustainable development goals and improve environmental performance. This study has some practical and social implications for stakeholders, i.e., owners, policy-makers, and managers of small and medium enterprises in emerging economies, to promote sustainable practices and environmental performance of businesses. As per the researcher’s knowledge, this study is the inaugural investigation into the influence of artificial intelligence on environmental performance, considering the mediating role of external environmental factors and employing dynamic capability theory within the context of small and medium enterprises in Pakistan.
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spelling doaj-art-d9466f861a214909ad50cefbc3967a1d2025-08-20T04:01:52ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-06-011211710.1057/s41599-025-05199-8The relationship between artificial intelligence and environmental performance: the mediating role of external environmental factorsMuhammad Khalid Anser0Muhammad Naeem1Shoukat Ali2Sajid Ali3Rubab Javid4School of Business, Xi’an International UniversityDepartment of Commerce, The Islamia University of BahawalpurDepartment of Commerce, The Islamia University of BahawalpurSchool of Economics, Bahauddin Zakariya UniversityDepartment of Commerce, The Islamia University of BahawalpurAbstract Despite the growing recognition of artificial intelligence in enhancing environmental performance, the pathways through which artificial intelligence influences environmental performance and the role of external factors, i.e., carbon emission strategies and sustainability regulations, in this relationship are unexplored. Data were collected from 387 employees of small and medium enterprises in Pakistan. Our empirical analysis confirms a positive relationship between artificial intelligence use and environmental performance. The results also reveal that external factors mediate and intensify the association between artificial intelligence and environmental performance. These findings are aligned with dynamic capability theory, which suggests that artificial intelligence tools with external factors can enhance small and medium enterprises’ capabilities to achieve sustainable development goals and improve environmental performance. This study has some practical and social implications for stakeholders, i.e., owners, policy-makers, and managers of small and medium enterprises in emerging economies, to promote sustainable practices and environmental performance of businesses. As per the researcher’s knowledge, this study is the inaugural investigation into the influence of artificial intelligence on environmental performance, considering the mediating role of external environmental factors and employing dynamic capability theory within the context of small and medium enterprises in Pakistan.https://doi.org/10.1057/s41599-025-05199-8
spellingShingle Muhammad Khalid Anser
Muhammad Naeem
Shoukat Ali
Sajid Ali
Rubab Javid
The relationship between artificial intelligence and environmental performance: the mediating role of external environmental factors
Humanities & Social Sciences Communications
title The relationship between artificial intelligence and environmental performance: the mediating role of external environmental factors
title_full The relationship between artificial intelligence and environmental performance: the mediating role of external environmental factors
title_fullStr The relationship between artificial intelligence and environmental performance: the mediating role of external environmental factors
title_full_unstemmed The relationship between artificial intelligence and environmental performance: the mediating role of external environmental factors
title_short The relationship between artificial intelligence and environmental performance: the mediating role of external environmental factors
title_sort relationship between artificial intelligence and environmental performance the mediating role of external environmental factors
url https://doi.org/10.1057/s41599-025-05199-8
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