Translating the role of artificial intelligence into green intellectual capital initiatives and green business process optimization in achieving corporate environmental performance

This study investigates the role of GICIs in enhancing CEP in Pakistan’s manufacturing sector, with a particular focus on the mediating role of GBPO and the moderating effect of AI. Using a cross-sectional design, data were collected from 250 managers across various manufacturing industries in Pakistan. Hypotheses were tested using SEM via Smart-PLS. The findings reveal that all three dimensions of GICIs—GHCIs, GSCIs, and GRCIs—positively influence CEP. GBPO was identified as a significant mediator, emphasizing its critical role in transforming green knowledge and practices into enhanced environmental performance. Furthermore, AI significantly moderated the relationship between GRCIs and GBPO, as well as GSCIs and GBPO, while its effect on GHCIs and GBPO was found to be insignificant, underscoring challenges in AI integration within human capital management in Pakistan's manufacturing sector. This research contributes to the existing literature by providing a novel framework that integrates GICIs, GBPO, and AI to address pressing environmental challenges. Practical implications for policymakers and corporate managers include the need for targeted investments in green structural and relational capital, as well as capacity-building initiatives for AI utilization. The study concludes with a discussion on the limitations and avenues for future research to generalize findings across different regions and industries.