The Influence of Artificial Intelligence on Sustainable Innovation and Entrepreneurial Risk Management in the Business Sector of Oman

Abstract

This study investigates the impact of Artificial Intelligence (AI) on sustainable innovation and its influence on entrepreneurial risk management in the Business Sector of Oman. AI technologies enhance resource efficiency, optimize energy usage, support eco-friendly product design, and enable data-driven environmental decision-making, promoting green innovation across sectors such as renewable energy, smart manufacturing, and sustainable finance. Using a structured questionnaire, primary data were collected from entrepreneurs, managers, and innovation professionals in technology-driven and green sectors. Quantitative analyses, including descriptive statistics and regression, were applied to examine the effects of AI adoption on sustainable innovation performance, entrepreneurial growth, and environmental outcomes. The results reveal that AI adoption significantly improves operational efficiency, environmental performance, and the scalability of green ventures, generating new entrepreneurial opportunities in line with Oman Vision 2040. At the same time, challenges such as high implementation costs, technical complexity, skill gaps, data security issues, and regulatory uncertainties were identified. The study provides empirical evidence from a developing economy context and underscores the importance of supportive policies, responsible AI governance, and capacity-building initiatives to maximize the benefits of AI-driven sustainable innovation. Keywords: Artificial Intelligence; Green Innovation; Sustainable Entrepreneurship; Eco-Innovation; Entrepreneurial Opportunities; Risk Management; Empirical Analysis; Environmental Sustainability; Oman Vision 2040