Artificial Intelligence for Sustainable Development in Chinese Agricultural Firms: The Roles of Sustainable Supply Chain Integration, Innovation, and Government Intervention

ABSTRACT Artificial intelligence (AI) is progressively being integrated into organizational processes to drive sustainability‐oriented transformation. However, the existing literature on the AI‐sustainability nexus remains fragmented and inconsistent. To address these inconsistencies, drawing on dynamic capability theory, this study develops a moderated mediation model to examine how the AI‐sustainability nexus operates through two mediating pathways (i.e., sustainable supply chain integration and innovation) under varying institutional environment (i.e., government intervention). Utilizing a sample of 208 Chinese agricultural firms, we find that both sustainable supply chain integration and innovation significantly mediate the relationship between AI use and sustainability performance. Government intervention positively moderates the impact of AI use on sustainable supply chain innovation. Moreover, our results reveal contingency‐dependent mediation pathways within the AI‐sustainability nexus. Specifically, we find that strong government intervention positions sustainable supply chain innovation as the primary pathway, while weak government intervention shifts the emphasis toward sustainable supply chain integration as the central mechanism linking AI use to sustainability performance. This study contributes to the technology and sustainability literature by clarifying the mechanisms and boundary conditions through which AI use enhances sustainability performance. The findings offer practical insights for managers on how to align AI deployment with innovation and integration strategies to maximize sustainability outcomes under government intervention.