AI-Driven Innovation, ESG Performance, and Digital Transformation in UK Technology Firms

Purpose: With digital transformation guided by artificial intelligence (AIDT) as a moderator, this study examines the impact of innovation in new quality productivity (NQP) on environmental, social, and governance (ESG) performance across technologically advanced businesses in the United Kingdom.Design/Methodology/Approach: By using a structured questionnaire and data analysis using SPSS and AMOS, we validated two hypotheses through the modelling by structural equations (MES). Findings: The findings show that NQP innovation significantly improves environmental ESG performance, and that AIT positively modifies this relationship. The findings add to the body of knowledge on sustainable innovation and digital transformation by offering practical recommendations for high-tech companies looking to enhance their ESG performance.Practical Implications: This study makes significant additions to the literature on digital transformation and long-term innovation, particularly in the context of technologically advanced businesses in the United Kingdom.Originality/Value: The study highlights the role of digital transformation led by IA (AIDT) as a moderator strengthening the relationship between NQP and ESG.