Sustainability and Consumer Behaviour: The Role of AI-Driven Green Nudges in Shaping Gen Z's Sustainable Purchase Intentions in Emerging Markets

Generation Z, a digitally native and environmentally conscious cohort, is increasingly recognized as a key driver of sustainable consumption, yet an intention–behaviour gap persists. This study investigates how AI-driven green nudges personalized, algorithmic cues promoting eco-friendly choices affect Gen Z consumers’ trust, attitudes, and sustainable purchase intentions in the Indian context. Drawing on the Stimulus–Organism–Response (SOR) framework and the Theory of Planned Behaviour (TPB), we develop and test a structural model wherein AI nudges act as stimuli that influence internal psychological states (trust and attitude), which in turn drive purchase intention. Data were collected from 300 urban Gen Z consumers through a vignette-based online survey and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). Results confirm that AI-driven nudges significantly enhance both trust in AI (β = 0.42, p < .001) and positive attitudes toward sustainable products (β = 0.28, p < .001). Trust further strengthens attitudes (β = 0.41, p < .001), while both trust (β = 0.19, p < .01) and attitude (β = 0.50, p < .001) predict purchase intention. Mediation analysis reveals full mediation, indicating that AI nudges influence purchase intentions only through trust and attitude. The model explains 59% of variance in sustainable purchase intention and 47% in attitudes, demonstrating moderate-to-high explanatory power. The study contributes to theory by integrating SOR and TPB while introducing trust in AI as a novel mediator in sustainability research. Practical implications highlight that transparent, personalized AI recommendations can narrow the green attitude behaviour gap, offering businesses and policymakers scalable pathways to foster sustainable consumption in emerging markets.