FinTech and AI for sustainability: dynamic insights into Saudi Arabia’s green growth transition

Purpose This study investigates how digital and innovation-driven technologies: Financial Technology (FinTech), Artificial Intelligence (AI), Information and Communication Technology (ICT) and Research and Development (R&D) influence green growth in Saudi Arabia. While digital transformation is accelerating under the Vision 2030 agenda, empirical evidence on the environmental implications of these technologies in hydrocarbon-dependent economies remains limited. Design/methodology/approach Using annual time-series data for the period 1990–2021, the study employs the Dynamic Autoregressive Distributed Lag (ARDL) Simulation approach to examine both short-run and long-run relationships between technological factors and the Green Growth Index. The simulation framework allows assessment of how shocks to key variables such as FinTech, AI and ICT affect green growth over time. Findings The results reveal that GDP growth and technological innovation contribute positively to green growth in the long run. In contrast, standalone expansion of FinTech and ICT infrastructure is associated with weaker green growth outcomes, suggesting that digitalization without environmental alignment may increase energy consumption. However, interaction effects show that the integration of FinTech with AI and the combination of AI with R&D significantly enhance green growth, indicating that technological complementarities play a crucial role in achieving sustainable outcomes. Practical implications The findings highlight the need for policy frameworks that integrate digital transformation with environmental objectives. In particular, policymakers should promote AI-enabled green FinTech applications, support environmentally oriented R&D and encourage energy-efficient digital infrastructure to ensure that technological development contributes to sustainability goals. Originality/value This study provides one of the first empirical assessments of the joint effects of FinTech, AI, ICT and R&D on green growth in Saudi Arabia using a Dynamic ARDL simulation framework. The study contributes to the emerging literature on digitalization and environmental sustainability by demonstrating that the environmental impact of digital technologies depends critically on their interaction with innovation systems and policy alignment.