Harnessing AI and digital innovation for green innovation and sustainable performance

Purpose AI and digital innovation (DI) enhance the operational efficiency of hotels while simultaneously fostering green innovation (GI). This dual benefit provides hotels with a competitive edge, enabling them to pursue more sustainable practices that align with the growing emphasis on environmental protection among consumers. This paper seeks to examine the influence of AI and DI on GI, sustainable performance (SP) and competitive advantage (CA). Design/methodology/approach Employing path modeling through the partial least squares structural equation modeling (PLS-SEM) technique to enhance understanding of the effects of artificial intelligence and digital innovation. An anonymous survey consisting of 34 questions was administered to 668 participants from various hotels in Vietnam. Findings The findings indicate that artificial intelligence positively influences both DI and GI, with DI serving as a mediator in the connection between AI and GI. Additionally, AI contributes positively to SP and CA, with digital and GI playing mediating roles in this relationship. Practical implications AI and digital innovation enhance green innovation and sustainability in Vietnamese hotels through smart data and energy management. Furthermore, it underscores the necessity of combining these two forms of innovation to effectively promote environmental protection and sustainable development within the hospitality sector. Originality/value This research highlights the significant impact of AI as a driving force for both digital and environmental innovation. A key finding of the study is that the advantages related to SP and the competitive edge derived from AI are primarily attained through initiatives in green and DI.