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<scp>AI</scp> as a Sustainability Capability for Advancing <scp>SDG</scp> 7 and <scp>SDG</scp> 9: Evidence From Energy Technology Innovation in Chinese Listed Enterprises

Fengsheng ChienFaculty of Finance City University of Macau Macau ChinaMuhammad SadiqSchool of Accounting and Finance, Faculty of Business and Law Taylor's University Subang Jaya MalaysiaAtif AzizIqra University Karachi Karachi PakistanJamshid PardaevTermez University of Economics and Service Termez Uzbekistan
2026en

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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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