Artificial intelligence capabilities and green innovation: The mediating role of digital production

In recent years, academia and practitioners have become increasingly interested in artificial intelligence capabilities. Few empirical studies, however, have explored how artificial intelligence capability affects digital production and both exploratory and exploitative innovation. Survey data from 275 businesses across the manufacturing, technology, and service industries were analyzed by Partial Least Squares Structural Equation Modeling. The findings show that both exploratory and exploitative green innovation are significantly and positively associated with artificial intelligence capability and digital production. Furthermore, the research highlights that digital production serves as a mediating pathway in the relationship between artificial intelligence capabilities and both exploratory and exploitative green innovation. By explaining how artificial intelligence-driven digital transformation can serve as a dual pathway for green innovation, the study advances our comprehension of green technology management and information systems. There are real-world implications for businesses attempting to balance environmental performance, technology investment, and long-term competitiveness.