The Effects of Embracing Artificial Intelligence Focus on Corporate Sustainability Performance: The Mediating Effect of Digital Innovation

Authors

  • Inam Ullah Department of Management Science, Abasyn University, Peshawar, Pakistan
  • Faryal Raheem Assistant Professor, Abasyn University, Peshawar, Pakistan
  • Farooq Shah Associate Professor, Department of Management Science, CECOS University of IT and Emerging Sciences, Peshawar, Pakistan

DOI:

https://doi.org/10.63544/jbii.v5i6.141

Keywords:

Corporate Sustainability Performance, Digital Innovation, AI Adoption Intensity

Abstract

Under the rapid growth of economy and society, enterprises are paying more and more attention to environmental and social sustainability besides economic benefits. As a crucial engine for technological innovation, the effective use of artificial intelligence (AI) to improve business sustainability performance has received much attention from academics and industry. This research investigates the influence of the degree of AI adoption on corporate sustainability performance with an emphasis on the mediation effect of digital innovation. The empirical analytic approach was used in this study. The study obtained 451 employee survey responses from manufacturing businesses. The results show that the intensity of AI adoption significantly facilitates corporate sustainability performance, which is represented in the complete improvements of economic, environmental, and social advantages. Moreover, the digital innovation proved is an important mediating factor between AI adoption and sustainability performance. Moreover, this study empirically analyses in depth the application paths and mechanisms of AI in corporate sustainability, providing theoretical basis and practical guidance for corporate managers in strategy and policy making.

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Author Biographies

Inam Ullah , Department of Management Science, Abasyn University, Peshawar, Pakistan

Faryal Raheem, Assistant Professor, Abasyn University, Peshawar, Pakistan

Farooq Shah, Associate Professor, Department of Management Science, CECOS University of IT and Emerging Sciences, Peshawar, Pakistan

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Published

2026-06-23

How to Cite

Ullah , I., Raheem, F., & Shah, F. (2026). The Effects of Embracing Artificial Intelligence Focus on Corporate Sustainability Performance: The Mediating Effect of Digital Innovation. Journal of Business Insight and Innovation, 5(6), 170–183. https://doi.org/10.63544/jbii.v5i6.141

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