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AI-Driven Transformation: An Analytical Study of Sustainable Business Model Innovation
Dr. D. Abraham Pradeep, Dr. S. Sekar, Dr. S. Pugalanthi, R L Institute of Management Studies (A Unit of Subbalakshmipathy College of Science)
Pages: 42-52 | First Published: 05 Oct 2025
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Abstract

The integration of Artificial Intelligence (AI) into business operations has emerged as a pivotal force in driving digital transformation while simultaneously addressing the growing need for sustainability. Organizations across sectors are increasingly leveraging AI technologies not only to enhance efficiency and competitiveness but also to redesign business models that align with environmental, social, and governance (ESG) objectives. This study presents an analytical exploration of how AI fosters sustainable business model innovation by bridging technological advancement with long-term value creation. Using a mixed-method approach that combines qualitative case analysis with secondary data synthesis, the paper evaluates the extent to which AI-enabled systems contribute to resource optimization, circular economy practices, and stakeholder-centric strategies. The findings highlight that AI facilitates predictive insights, operational efficiency, and green innovations while also introducing challenges related to ethics, governance, and data security. By offering evidence-based insights, this paper underscores AI’s transformative potential in embedding sustainability within corporate strategies and contributes to the evolving discourse on digital and sustainable innovation. The study further provides managerial and policy implications, suggesting frameworks for organizations to integrate AI responsibly into sustainability-driven transformations.

Keywords: Artificial Intelligence; Business Model Innovation; Sustainability; Digital Transformation; Analytical Study

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