AIO and GI

Green innovation has become a critical priority in firms\u2019 AI deployment strategies, especially within fiercely competitive industrial environments. Grounded in dynamic capabilities theory, this study explores the association between AI orientation and firms\u2019 green innovation and analyzes the potential moderating effect of industrial environments using the sample of Chinese A-share listed firms from 2013 to 2022. We propose a novel measure of AI orientation based on text similarity. Empirical results show that a one-unit increase in AI orientation leads to a 5.59% increase in green innovation output. The industrial environment plays a moderating role in this relationship. Specifically, industrial environmental munificence and dynamism amplify this positive effect, whereas industrial environmental complexity does not exhibit a moderating influence. These results highlight the critical role of AI orientation in fostering green innovation, contingent on specific industrial environmental contexts. Furthermore, the heterogeneity is analyzed from the three aspects of the firm\u2019s size and its industry type. The results show that AI orientation can better improve green innovation in large firms and those operating in non-high-pollution industries. These findings underscore the strategic role of AI orientation in promoting firms\u2019 green innovation, varying by industrial environmental contexts, which contributes to a deeper understanding of AI orientation and green innovation effects. Accordingly, firms should assess the environmental contexts before optimizing AI orientation initiatives for green innovation.