Does ESG performance affect corporate AI investment?

This study examines the impact of ESG performance on artificial intelligence (AI) investment and its underlying mechanisms. Using a panel of China’s A-share listed firms from 2010 to 2023, we find that ESG performance has a significant positive effect on corporate AI investment. The results remain consistent across a series of endogeneity and robustness checks. Guided by the Technology – Organization – Environment (TOE) framework, our mechanism analysis indicates that ESG performance promotes AI investment by enhancing technological conditions, strengthening organizational readiness, and improving the external environment. Overall, our findings highlight the role of ESG performance in corporate AI resource allocation.