Artificial Intelligence for Sustainable Development: A Theoretical Framework Linking AI Capabilities with Environmental, Social and Economic Value Creation
TL;DR
A comprehensive theoretical framework is developed that conceptualises AI capabilities as strategic resources driving multidimensional value creation across the environmental, social, and economic domains of sustainable development.
Abstract
The accelerating advancement of Artificial Intelligence (AI) has positioned it as a transformative force with significant implications for sustainable development. While existing research highlights the potential of AI to address environmental, social, and economic challenges, there remains a lack of integrated theoretical frameworks that systematically explain how AI capabilities contribute to sustainability outcomes. This paper develops a comprehensive theoretical framework that conceptualises AI capabilities as strategic resources driving multidimensional value creation across the environmental, social, and economic domains of sustainable development. Drawing upon the Resource-Based View, Stakeholder Theory, and the Triple Bottom Line framework, the study synthesises existing literature to explain how core AI capabilities, such as predictive analytics, automation, optimisation, and intelligent decision-making, enable organisations and institutions to enhance resource efficiency, improve social welfare, and foster economic growth. The framework further highlights the mediating role of operational and strategic transformation processes through which AI capabilities translate into sustainability outcomes. In addition to opportunities, the paper critically examines the challenges associated with AI deployment, including ethical concerns, energy consumption, data bias, and governance issues, emphasising the need for responsible and inclusive AI practices. By integrating insights from technology, sustainability, and management literature, this study contributes to the growing discourse on AI-driven sustainability by offering a structured theoretical perspective on value creation. The proposed framework provides a foundation for future empirical research and offers strategic implications for policymakers, organisations, and stakeholders seeking to leverage AI for sustainable development.