The Role of Artificial Intelligence in Sustainable Transportation and Manufacturing: Empirical Findings From Southeast Asian Countries

ABSTRACT Artificial intelligence is said to be able to lessen environmental harm in many sectors. In this regard, the research examines how the transportation and industrial sectors affect carbon emissions in Southeast Asian nations (China, India, Indonesia, Japan, South Korea, and Thailand) as well as how artificial intelligence may mitigate these impacts. According to the STIRPAT model, the novel panel CS‐ARDL approach is used in this context to assess an observation period spanning the years 2004–2022. The results demonstrate that carbon emissions are raised by energy use in the transportation and industrial sectors. In terms of moderating impacts, artificial intelligence applications in the transportation sector show beneficial environmental consequences, while their usage in the industrial sector has no discernible impact on emissions levels. In this regard, policy recommendations are presented for governments to require AI‐supported production facilities to use clean energy sources instead of fossil fuels.