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book chapter · Advances in computational intelligence and robotics book series

AI as a Catalyst for Green Entrepreneurship

In plain language

Artificial intelligence acts as a catalyst for green entrepreneurship amidst escalating climate risks and transitions towards sustainability. It functions as a strategic capability that strengthens opportunity recognition, accelerates eco-innovation, improves operational efficiency, and enhances environmental, social, and governance transparency. By combining resource-based theory, dynamic capabilities, and institutional perspectives, a conceptual framework connects these technological capabilities directly to entrepreneurial processes and broader socio-economic outcomes. Specific sectoral applications are highlighted across energy, agriculture, manufacturing, and sustainable finance. Alongside these opportunities, critical ethical and governance challenges must be managed, notably the energy consumption of computational systems and fragmented regulatory environments. Supported by responsible policy and ecosystem frameworks, artificial intelligence serves as an enabler of low-carbon transformation and inclusive economic growth.

Key takeaways

  • Artificial intelligence functions as a strategic capability that improves opportunity recognition, operational efficiency, eco-innovation, and environmental transparency.
  • A conceptual framework links computational capabilities with entrepreneurial processes, sustainability outcomes, and wider socio-economic impacts.
  • Relevant sectoral applications are identified across energy, agriculture, manufacturing, and sustainable finance.
  • Realising these benefits requires managing challenges including high energy consumption by computational tools and fragmented regulatory policies.

Why it matters

Addressing escalating climate threats demands innovative commercial approaches. Demonstrating how artificial intelligence can aid green entrepreneurs across vital industries helps businesses, investors, and policymakers identify practical routes to sustainable transformation. Crucially, it highlights the need to balance technological benefits with responsible governance and the energy demands of the technology itself.

Commercialisation angle

This conceptual work operates at an early analytical stage rather than presenting a tested product. It identifies commercial opportunities for green ventures, industrial operators, and financial technology developers in energy management, precision agriculture, manufacturing, and sustainable finance. Practical uptake by enterprises and investors will require navigating fragmented regulations and mitigating the energy consumption associated with running computational tools.

AI-generated from the published abstract. Always read the original work before citing.

Abstract

This chapter examines the catalytic role of artificial intelligence (AI) in advancing green entrepreneurship within the context of escalating climate risks and sustainability transitions. It argues that AI functions as a strategic capability that enhances opportunity recognition, accelerates eco-innovation, improves operational efficiency, and strengthens ESG transparency. By integrating insights from resource-based theory, dynamic capabilities, and institutional perspectives, the chapter develops a conceptual framework linking AI capabilities to entrepreneurial processes, sustainability outcomes, and broader socio-economic impact. The analysis highlights sectoral applications in energy, agriculture, manufacturing, and sustainable finance while addressing ethical and governance challenges, including energy consumption and regulatory fragmentation. The chapter concludes that AI, when aligned with responsible policy frameworks and ecosystem support, serves as a critical enabler of low-carbon transformation and inclusive economic growth.

Research topics

  • Innovation, Sustainability, Human-Machine Systems
  • Sustainable Finance and Green Bonds
  • Sustainability and Innovation in Business

Sustainable Development Goals

Read the original research

This page summarises published work. The authoritative version sits with the publisher.

DOI: 10.4018/979-8-3373-7699-8.ch008

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