Generative artificial intelligence in FinTech: Applications, environmental, social, and governance considerations, and organizational performance: The moderating role of ethical dilemmas

Research background: Generative Artificial Intelligence (GenAI) is a disruptive technology with great promise for the FinTech industry. The current study focuses on the drivers of GenAI adoption and its consequences for both exploratory and exploitative innovation in FinTech companies. Purpose of the article: Based on a conceptual model that extends the Technology-Organization-Environment (TOE) framework, this study also explores the moderating effect of ethical dilemmas in the relationship between GenAI adoption and innovation, as well as the role of Environmental, Social, and Governance (ESG) factors in shaping the broader impact of GenAI on organizational practices. Methods: Data were collected and analyzed using Structural Equation Modeling (SEM) from participants in the Chinese FinTech industry. Findings & value added: Our empirical findings show that GenAI improves both kinds of innovations and, subsequently, leads to improved organizational performance. However, ethical dilemmas do not significantly affect either of these effects. Moreover, the study suggests that aligning GenAI adoption with ESG goals, such as promoting sustainable practices and ensuring ethical governance, can further enhance long-term performance and stakeholder trust. This study underlines the strategic role of GenAI adoption in driving innovation, advancing ESG objectives, and improving performance in the fast-evolving landscape of FinTech.