Artificial Intelligence in Sustainable Management: Driving Environmental Transitions and Organizational Performance

Author

Onyemaechi Deborah Chinomso, Babatunde Olayinka Alege, Banjo Comfort Janet, AFOLABI IDOWU OLUWATOYIN, Adeyemi Moses Salako, AJEIGBE OPEYEMI TUNMISE

Abstract

 Organizations across many industries are changing how they operate as they try to meet environmental targets while staying profitable. This paper looks at how computer systems that make or support decisions (commonly called artificial intelligence) help firms shift toward sustainable business practices without losing their competitive edge. In human resources, AI tools used for hiring and evaluating performance raise questions about whether employees see these systems as fair. Managers need to think about both how decisions are made (procedural fairness) and how outcomes are distributed (distributive fairness), while also linking their talent management to environmental goals. Using the technology-organization-environment (TOE) framework as a guide, the evidence shows that adopting AI strengthens a firm's ability to sense and act on opportunities for sustainable innovation. These capabilities help companies use resources more efficiently, reduce their environmental impact, and meet environmental regulations. In sectors like banking and telecommunications, AI tools improve customer service and regulatory compliance while also cutting energy use and supporting sustainable risk assessment. The paper concludes that weaving AI into everyday management is necessary for firms that want both strong performance and lasting environmental sustainability.

Keywords

Artificial intelligence; Sustainable management; Environmental transitions; Organizational performance; Technology-organization-environment framework.

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