THE ROLE OF ARTIFICIAL INTELLIGENCE IN SUSTAINABLE DEVELOPMENT: EMPIRICAL EVIDENCE FROM A GMM ANALYSIS

Abstract

Artificial Intelligence (AI) has emerged as a transformative force in promoting green development by enhancing energy efficiency, optimizing resource utilization, and driving sustainable innovation. This study investigates the impact of AI adoption on green development using a dynamic panel Generalized Method of Moments (GMM) approach, addressing potential endogeneity and reverse causality. The research utilizes panel data from multiple industries from 2013 to 2022, incorporating AI investment, AI patents, and AI-driven sustainability initiatives as key independent variables. Green development is measured through carbon footprint reduction, renewable energy adoption, and environmental efficiency metrics. The findings reveal a significant positive relationship between AI adoption and green development, with AI-driven automation and predictive analytics playing a crucial role in sustainability improvements. These results provide valuable policy insights for integrating AI into global sustainability frameworks and guiding businesses toward environmentally responsible AI implementation.