DOI: 10.1002/sd.71402 ISSN: 0968-0802

AI as a Sustainability Capability for Advancing SDG 7 and SDG 9: Evidence From Energy Technology Innovation in Chines

Fengsheng Chien, Muhammad Sadiq, Atif Aziz, Jamshid Pardaev

ABSTRACT

This study examines whether artificial intelligence (AI) functions as a sustainability capability that accelerates progress toward SDG 7 (affordable and clean energy) and SDG 9 (industry, innovation and infrastructure) in the context of China's low‐carbon transition. Using a panel of listed enterprises from 2007 to 2022, the findings show that firms with higher AI capability undertake significantly more energy technology innovation (ETI). This relationship remains robust under alternative model specifications and lag structures. Moreover, the effect of AI is stronger for firms that publicly commit to low‐carbon strategies and those located in resource‐intensive regions facing higher transition pressure. These results indicate that AI strengthens corporate capacity to interpret environmental complexity and convert transition pressures into innovation outcomes. The study contributes to sustainability governance research by demonstrating how digital intelligence can support enterprise‐level advancement of SDG‐aligned energy innovation in emerging economy settings.

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