Artificial Intelligence, ESG Performance, and Value Creation
A Theoretical Model Based on Organizational Capabilities
Keywords:
Artificial intelligence, ESG performance, value creation, organizational capabilities, sustainabilityAbstract
The adoption of artificial intelligence (AI) by organizations has frequently been treated as an end in itself, an indicator of technological modernization disconnected from its concrete effects on environmental, social and governance (ESG) performance and on sustainable value creation. This article proposes a theoretical model that connects these three dimensions from the perspective of organizational capabilities, arguing that AI only translates into superior ESG performance when mediated by specific capabilities for capturing, integrating, reconfiguring and governing the knowledge generated by algorithmic systems. The argument is developed through an integrative narrative review of the literature on dynamic capabilities, AI governance and ESG performance, and concludes with implications for managers, investors and corporate policy makers.
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