The impact of artificial intelligence technology on corporate social responsibility performance

With the advancement of artificial intelligence (AI) technology, the emerging concept of ‘responsible AI’ has gained attention. This study investigates the relationship between AI technology and corporate social responsibility (CSR) performance. Using textual analysis to identify AI-related patents and measure firm-level AI technology, we find a positive relationship between AI technology and CSR performance. This effect is more pronounced for firms in regions with stronger government digital initiatives. In addition, the positive effect on CSR performance remains valid after controlling for endogeneity and conducting a battery of robustness checks. Furthermore, we find that firms’ AI technology can increase firm productivity and operational efficiency, and reduce environmental pollution, thereby improving CSR performance towards shareholders, customers, and the environment. This study contributes to the growing literature on AI by examining the conditions under which AI technology yields nonfinancial benefits.