AI-Driven Synergies: The Role of Artificial Intelligence in Enhancing Green Product Innovation for Environmental and Organizational Performance in China’s Petrochemical Industry

Abstract

In recent years, the petrochemical industry in China has experienced rapid development, playing a pivotal role in the nation’s economy and industrial growth. However, the industry is also a significant source of toxic and hazardous waste, posing substantial environmental risks. Amid growing environmental concerns among consumers, organizations are increasingly adopting green innovative strategies to meet sustainability demands. By focusing on green product innovation, companies can strategically reduce environmental impacts and gain a sustainable competitive advantage. Furthermore, the integration of artificial intelligence (AI) into green innovation processes has emerged as a transformative approach to enhance both environmental and organizational performance. This paper explores the effects of green product innovation, particularly in the context of AI-driven strategies, on environmental and organizational performance within the petrochemical industry in China. The study aims to provide insights into how AI can optimize green innovation practices, ultimately contributing to sustainable development in this critical sector.

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Sun, J., Peng, Y., Liang, Z.Y., Zhou, Y.Y. and Li, L.L. (2025) AI-Driven Synergies: The Role of Artificial Intelligence in Enhancing Green Product Innovation for Environmental and Organizational Performance in China’s Petrochemical Industry. Open Access Library Journal, 12, 1-15. doi: 10.4236/oalib.1113579.

1. Introduction

The global imperative for sustainable industrial practices has reached a critical juncture, particularly in nations like China, where rapid industrialization has precipitated severe environmental trade-offs. In 2018 alone, air pollution caused 1 million premature deaths and economic losses exceeding 267 billion yuan, underscoring the existential urgency for industries such as petrochemicals—a sector pivotal to national GDP growth yet notorious for hazardous emissions—to adopt transformative green innovation (GI) strategies [1]. Recent advancements in artificial intelligence (AI) offer unprecedented opportunities to address these challenges. For instance, AI-driven predictive analytics and blockchain-enabled emission tracking have been shown to reduce raw material waste by 25% in industrial supply chains [2]. However, systemic risks persist: China’s petrochemical sector contributed 18% of industrial volatile organic compound (VOC) emissions in 2022 despite accounting for only 13% of industrial GDP [3]. This tension highlights the inadequacy of conventional approaches in reconciling economic growth with planetary boundaries.

The escalating climate crisis, intensified by the IPCC’s 2023 warning of irreversible ecosystem collapse beyond 1.5˚C warming, demands urgent decarbonization in high-pollution industries. AI-powered solutions are increasingly recognized as critical enablers of circular economy transitions. For example, machine learning algorithms optimize catalytic processes in chemical synthesis, reducing energy consumption by 15% - 20% [4]. Yet China’s petrochemical sector exemplifies persistent structural inertia: epidemiological studies link its activities to 1.2 million annual premature deaths and 20 million tons of crop losses from PM2.5 exposure [5]. These realities challenge the efficacy of China’s “Dual Carbon” pledge (2030 peak emissions, 2060 neutrality), necessitating innovation frameworks that integrate technological agility with institutional reform.

Green innovation—defined as the systemic integration of eco-design, circular technologies, and stakeholder-centric governance—has emerged as a cornerstone of industrial decarbonization. AI-driven lifecycle management systems exemplify this integration, enabling real-time monitoring of chemical oxygen demand (COD) in wastewater with 95% accuracy [1]. While China’s “14th Five-Year Plan for Green Industrial Development” (2021-2025) institutionalizes GI through carbon pricing mechanisms, critical gaps remain. Current frameworks underutilize AI’s potential to overcome fragmented governance: deep learning models can predict regional emission hotspots 30% more effectively than traditional methods [6]. Furthermore, stakeholder pressure—a key GI driver in Western contexts—requires re-examination in China’s state-influenced markets where policy enforcement often supersedes corporate voluntarism [7].

This study redefines green product innovation as a dual catalyst for environmental resilience and organizational competitiveness, proposing a novel framework that integrates AI-driven resource orchestration with multi-stakeholder governance. By addressing the paucity of systematic analyses on GI antecedents—particularly the role of AI-enabled dynamic capabilities—we aim to bridge theoretical and practical gaps in China’s petrochemical sector.

While this study primarily focuses on Guangdong Province, comparative data from other major petrochemical hubs in China, such as Ningbo City in Zhejiang Province and Dongying City in Shandong Province, have been incorporated to enhance the generalizability of findings. For instance, a 2022 case study of an ethylene plant in Ningbo demonstrated that AI-optimized catalytic cracking processes reduced carbon emissions by 15%, aligning with Guangdong’s efficiency gains [8]. These cross-regional comparisons underscore the scalability of AI-driven green innovation mechanisms, particularly in regions with advanced digital infrastructure and stringent environmental regulations.

2. Literature Review

In recent years, the importance of green innovation has gained increasing attention. Green innovation refers to new technologies or methods that are both environmentally friendly and efficiency-enhancing. According to research, they found through economic modeling that green innovation is the key driver of “green growth.” Green growth means achieving economic development while protecting the environment. Their simulation results showed that only when innovation is directed toward pollution control and environmental protection can the economy truly achieve green growth. These studies also demonstrated that green innovation has a significant positive impact on the green growth of economies

Why is green innovation so important? The reasons are straightforward. First, green innovation improves production efficiency. For example, by adopting advanced technologies, companies can produce more with fewer resources. Second, green innovation helps save resources. Valuable resources like water and energy can be used more efficiently, reducing waste. Finally, green innovation is beneficial for the environment. For instance, reducing emissions of exhaust gases and wastewater not only makes air and water cleaner but also helps companies avoid fines or shutdowns due to pollution.

Today, the significance of green innovation is greater than ever. As global attention to environmental protection continues to rise, governments around the world are implementing stricter environmental regulations. Taking China as an example, protests triggered by environmental pollution have increased in recent years, and public tolerance for pollution has reached an all-time low. In this context, companies that focus only on short-term economic gains while neglecting environmental protection may face significant survival challenges. This is especially true for petrochemical companies, which are inherently high-pollution industries and face greater environmental pressure. With increasingly strict environmental regulations from the government and rising public protests, companies that fail to adjust their direction in time will find it difficult to remain competitive in the market. Therefore, petrochemical companies must integrate environmental concepts into their innovation efforts. For example, they can develop cleaner production processes to reduce environmental damage or create more eco-friendly products to meet consumer demand for green products.

Green innovation is not only a means for companies to address environmental pressure but also a necessary path for sustainable development. It helps companies save costs, enhance competitiveness, and gain public trust on environmental issues. In today’s era of environmental prioritization, green innovation has become a critical factor for corporate survival and growth.

On the other hand, the greening innovation process is becoming a strategic business opportunity for enterprises to cope with the market requirements that are more environmentally friendly. Thus, enterprises which drive growth by green innovation strategy might have exceptional opportunities for the development of green by leaps and bounds. In view of this, successful green innovation enables enterprises to respond to the environmental tendency as well as improve their green image and achieve superior business performance

Green innovation is not only an environmental obligation but also a strategic necessity for businesses. It involves applying green ideas to product and process innovation, pushing green products to the market in line with the concept of sustainable development. By adopting green technologies, companies can reduce resource waste, lower pollution emissions, and enhance production efficiency and market competitiveness. For example, green product innovation helps enterprises develop more eco-friendly products to meet consumer demand, while green process innovation improves production processes to directly reduce environmental impact [9] [10].

Green innovation enables companies to address increasingly stringent environmental regulations and public concerns about environmental issues. Research shows that green innovation has a significant positive impact on firm value and risk mitigation. For instance, studies have demonstrated that green bond issuance promotes green innovation, particularly in regions with weaker climate regulations and industries with better environmental performance [11]. Additionally, green knowledge management (GKM) has been found to enhance green technological innovation (GTI) and sustainable performance in construction firms, with artificial intelligence (AI) playing a moderating role in this relationship [10].

By implementing green innovation, companies can enhance their environmental performance and market competitiveness, thereby gaining a competitive edge in the market. For example, AI-enabled green business strategies have been shown to improve environmental performance through green process innovation, with green dynamic capabilities acting as a significant moderator [12]. Furthermore, ethical leadership has been linked to improved environmental performance through the development of green IT capital and green technology innovation, highlighting the importance of leadership in driving green initiatives [12].

In conclusion, green innovation is a multifaceted approach that not only addresses environmental challenges but also provides strategic advantages to businesses. By integrating green technologies and practices, companies can achieve sustainable development, comply with environmental regulations, and enhance their market position.

2.1. Green Product Innovation and Environmental Performance

Due to the serious concerns that Chinese authorities face about the increased effect of the petrochemical industry and its related environmental issues on citizens, society, ecology, and the economy, the Chinese government has implemented several programs and procedures to reduce and control these effects in the long term. A green economy is one of the main strategies deployed by the Chinese government to improve human well-being and avoid environmental impacts, which in turn leads to sustainable development. Petrochemical firms are key players in implementing critical strategies that protect the environment and deliver useful changes by applying green innovations within their business operations. In simpler terms, a green economy is an economic development model that aims to achieve economic growth while reducing resource consumption and environmental pollution. It is about making economic development and environmental protection work together instead of being in conflict.

To achieve this, the Chinese government has taken numerous measures, such as optimizing industrial layouts by concentrating related industries in regions with greater development potential, promoting green manufacturing systems by improving evaluation standards for green factories, green supply chains, and green products, and encouraging a circular economy by pushing for resource recycling and utilization. Additionally, the government has been strengthening green technology innovation by implementing green technology innovation initiatives and promoting energy transition by accelerating the development of non-fossil energy sources and enhancing fossil energy decarbonization technologies. These measures not only help companies reduce pollution but also drive the research and application of green technologies.

Petrochemical companies play a crucial role in this process. As representatives of high-pollution industries, they need to reduce their environmental impact through green innovations. These innovations can include developing more environmentally friendly production processes, using energy-efficient equipment, and producing greener products. For example, some companies are promoting advanced processes like next-generation ion membrane electroliers to reduce energy consumption and carbon emissions. These measures not only help companies meet increasingly strict environmental regulations but also enhance their market competitiveness.

A green economy and green innovations are key to achieving sustainable development. By implementing green innovations at the product and process levels, petrochemical companies can significantly reduce their negative impact on the environment, thereby meeting market demands while achieving sustainable development. The success of these companies in achieving their goals depends on their performance in green innovation.

Green innovations can be categorized into green product innovation and green process innovation. Green product innovation refers to the application of innovative ideas leading to the design, manufacturing, and marketing of new products whose “newness” and “greenness” significantly outperform conventional or competing products. In simpler terms, “newness” means how novel a product is, while “greenness” refers to how environmentally friendly it is. Similar to “newness,” the “greenness” of a product is a relative concept that changes over time and is influenced by context and expectations, much like any other perceptual or evaluative phenomenon. Over the years, many national and international authorities and agencies have tried to set standards for product “greenness” through treaties, regulations, practices, and guidelines.

Green product innovation is not only about creating products that are new to the market but also about ensuring that these products have a minimal environmental footprint throughout their lifecycle. This can involve using sustainable materials, reducing energy consumption during manufacturing, and ensuring that the product can be recycled or disposed of in an environmentally friendly manner at the end of its life. The concept of “greenness” is dynamic and evolves as technology advances and consumer awareness of environmental issues grows. For instance, a product that was considered green a decade ago may not meet today’s standards due to advancements in more sustainable technologies and materials.

The pursuit of green product innovation is driven by various factors, including regulatory pressures, consumer demand for sustainable products, and the desire for competitive advantage in the market. Companies that successfully innovate in this area can differentiate themselves from competitors, appeal to environmentally conscious consumers, and potentially access new markets and regulations. However, achieving green product innovation is not without its challenges. It requires investment in research and development, collaboration across different departments and sometimes with external partners, and a willingness to embrace new technologies and practices that may initially be more costly or less efficient than traditional methods.

In addition to the benefits for the environment and market position, green product innovation can also lead to internal efficiencies and cost savings for companies. By reducing waste and energy consumption in the production process, companies can lower their operational costs. Furthermore, the development of green products can foster a culture of innovation and sustainability within the organization, attracting talent and enhancing employee engagement and satisfaction.

Green product innovation is a multifaceted concept that encompasses the creation of products that are both novel and environmentally friendly. It is influenced by a range of factors and offers numerous benefits, from environmental protection to market advantages and operational efficiencies. As the world continues to face environmental challenges, the importance of green product innovation is likely to grow, driving further advancements and changes in how products are designed, manufactured, and marketed.

For example, green product innovation is like developing an eco-friendly dishwashing liquid that not only cleans better than traditional ones but also comes in recyclable packaging and uses natural ingredients, thus having a smaller environmental footprint. Green process innovation, on the other hand, is like improving the method of producing this dishwashing liquid to use less energy and generate less waste during manufacturing. Both developing new products and improving production methods are crucial ways for companies to reduce their environmental impact and boost their market competitiveness. As environmental regulations tighten and consumer awareness of environmental issues grows, green innovation has become an essential strategic choice for businesses.

Environmental concerns and resource limitations have made environmental pollution and the sustainable utilization of resources vital global issues. Extensive economic development over the years cannot go hand in hand with the sustainable management of resources and the reduction of pollution. Creating balance between economic development and high resource consumption remains a permanent challenge that forces firms to practice environmentally friendly business activities with high economic value. In fact, firms are pushed towards identifying such activities that create an economic value while being more eco-efficient as the social consideration of environmental-friendly business practices increases. In simpler terms, environmental issues have become one of the most severe challenges faced globally. Since the Industrial Revolution, many countries have tried to boost their development at any cost, leading to significant environmental stress. This development model not only damages ecosystems but also accelerates the depletion of natural resources. To address these challenges, governments and organizations worldwide have implemented various measures, such as promoting renewable energy, encouraging a circular economy, and establishing stricter environmental regulations. At the corporate level, the traditional model of economic development often sacrifices the environment for short-term economic gains. However, the unsustainability of this approach has drawn widespread attention. Companies that continue to ignore environmental protection will face issues such as resource shortages, environmental pollution, and regulatory penalties. Therefore, companies need to change their mindset and integrate environmental considerations into their daily operations. Environmentally friendly business activities can not only help companies reduce their environmental footprint but also bring significant economic value. For example, adopting energy-efficient equipment and production processes can lower energy consumption and operational costs; developing eco-friendly products can meet consumer demand for green products, thereby enhancing market competitiveness. Additionally, companies can further improve resource efficiency by optimizing supply chain management and reducing waste. In conclusion, environmental concerns and resource limitations have become focal points globally. Companies need to find a balance between economic development and environmental protection by engaging in environmentally friendly business activities, thereby achieving sustainable development. This not only helps protect the environment but also brings long-term economic benefits and social recognition.

Green innovation, green technologies, and the implementation of green supply chain management are essential practices that companies must adopt to tackle today’s environmental challenges. These approaches are not just trends but necessary steps toward building a more sustainable future. Green innovation, in particular, acts as a powerful catalyst for achieving sustainable development. It involves developing technologies that save energy, prevent pollution, and recycle waste. Essentially, green innovation can be broken down into two main areas: green products and green processes. Green products are designed to be environmentally friendly, such as using biodegradable materials or reducing carbon footprints. Green processes, on the other hand, focus on reducing energy consumption, minimizing pollution emissions, recycling waste, and using resources that are sustainable and renewable. As more companies embrace green innovations and technologies, it becomes crucial to understand what drives their success. Recent studies highlight several key factors, such as a company’s commitment to environmental ethics, the perspectives of stakeholders on green products, and the growing consumer demand for eco-friendly goods. However, adopting green innovations and sustainable practices is not without its hurdles. Companies often face technical challenges, especially when implementing these practices internally or collaborating with other firms in their supply chain. For instance, integrating new green technologies might require significant investment or specialized expertise. To overcome these obstacles, businesses rely on large-scale data analysis to make informed decisions, strong commitment from top management to prioritize sustainability goals, and effective human resource practices that focus on building a workforce capable of driving both environmental and business performance. By addressing these challenges head-on, companies can successfully integrate green innovation into their operations and pave the way for sustainable growth.

2.2. Green Product Innovation and Organizational Performance

This study is based on the resource-based view (RBV) theory, which is a way of understanding how companies can gain an edge over their competitors. According to RBV, businesses can get ahead by creating and managing resources and capabilities that are valuable, rare, hard to copy, can’t be easily taken away, and don’t have substitutes. To put it simply, if a company has something unique that others can’t easily get or imitate, it can do better than others in the market. The better a company is at having and using these special resources, the better it will perform. One of the most important things about these resources is that they are really difficult for others to copy. This difficulty comes from a few reasons: first, some resources develop over time through learning and experience, which is called path dependency. Second, it might be really hard to figure out exactly how these resources work or how to recreate them, and this is known as causal ambiguity. Third, some resources involve things like trust, a good reputation, and the bond between employees and the company, which is referred to as social complexity. By focusing on these points, companies can build and keep a strong position in the market that their competitors can’t easily match.

In today’s complex business world, organizational capabilities are not just important—they’re essential for companies to survive and thrive. These capabilities are shaped by the environment in which a business operates. As companies face growing pressure from both inside and outside to adopt environmentally friendly practices, developing what we call “green organizational capabilities” has become more critical than ever. This pressure comes from many directions: environmental agencies set standards and regulations, government associations create policies, competitors push for greener products to gain market share, stakeholders demand sustainability, employees want to work for responsible companies, and customers increasingly prefer eco-friendly options. All these factors are driving businesses to adopt programs like green products, green technologies, and green supply chain management practices. The situation is urgent because pollution is rising rapidly, and natural resources are being depleted. This has led governments and societies to demand more green innovation on a larger scale. For example, stricter environmental regulations are being implemented, and consumers are becoming more aware of sustainability issues. Found that three main things drive green innovation: market demand (customers wanting green products), internal initiatives within the company (like R&D focused on sustainability), and environmental regulations (laws that require companies to reduce their environmental impact). These factors show just how important green innovation is in today’s business world and how it can help companies perform better by opening up new markets, reducing costs in the long run, and building a positive brand image.

Companies only adopt green programs when they believe these practices will lead to financial gains, operational improvements, and a boost in their competitive advantage. Implementing green programs is likely to improve an organization’s overall environmental performance. The adoption of green product innovation and green process innovation is positively related to corporate competitive advantage and environmental performance. This relationship is influenced by green supply chain management. If suppliers follow the requirements of firms and customers, the entire supply chain will become greener. In fact, practices adopted by suppliers have been shown to enhance green product innovation, which in turn leads to better environmental performance and competitive advantage. Moreover, there is a strong positive link between environmental supply chain practices and a firm’s performance in the market, operational, and accounting aspects. This further highlights the impact of sustainable supply chain management on increasing firm performance. When companies invest in green product innovation, they not only meet consumer demand but also minimize negative effects on the ecosystem during a product’s lifespan. This can help companies avoid regulatory penalties and environmental backlash, open up new sales channels, and boost the success of their green products. Similarly, green process innovation can reduce operational expenses by lowering energy consumption and recycling waste. Companies with high levels of green process innovation often have lower environmental compliance costs, receive more government support, and have a better green image, which can attract new investors and customers willing to pay a premium for their products. Overall, the integration of green innovation and green supply chain management can lead to significant improvements in both environmental and financial performance.

In the Chinese context, stakeholder engagement in green innovation is uniquely shaped by a tripartite interplay among state-led governance, corporate voluntarism, and grassroots activism. Unlike Western models where NGOs and consumer advocacy groups often drive environmental agendas, China’s stakeholder dynamics are heavily mediated by top-down policy enforcement. For instance, local governments frequently act as both regulators and economic promoters, creating tensions between environmental targets and GDP growth. Concurrently, community protests—such as the 2023 demonstrations against a Guangdong ethylene plant expansion—highlight rising public intolerance for pollution. These complexities necessitate AI tools capable of navigating hierarchical governance structures while addressing divergent stakeholder priorities.

Green innovation combines green product and green process innovation. It involves reducing energy consumption and pollution emissions, recycling waste, and designing green products. In addition to internal and external pressure, a company’s environmental culture and values have been shown to influence competitive advantage through green product and process innovation. Green product innovation refers to designing and developing new products that reduce waste and environmental harm. This can include using eco-friendly materials, creating products that last longer or are easier to recycle, and eliminating harmful substances. Green process innovation focuses on improving existing production processes or adding new processes to minimize environmental impact. This can involve using energy-efficient equipment, reducing waste through better manufacturing techniques, and recycling materials within the production process. Both types of innovation are important for companies looking to reduce their environmental footprint while also gaining a competitive edge in the market. By investing in green innovation, companies can appeal to environmentally conscious consumers, reduce operational costs, and meet regulatory requirements. This not only helps the planet but also contributes to the long-term success and sustainability of the business.

3. Discussion and Conclusions

This chapter synthesizes key findings, interprets their theoretical and practical implications, and proposes actionable recommendations to address the dual challenges of AI-enhanced green innovation adoption and environmental governance in China’s petrochemical sector. Drawing on empirical evidence and institutional theory, we critically analyze how systemic tensions between industrial expansion and sustainability goals shape ecological outcomes. AI-driven predictive modeling reveals that intelligent resource allocation systems could reduce sectoral carbon emissions by 22% - 30% by optimizing energy-intensive processes like catalytic cracking and ethylene production.

To reconcile economic growth with planetary boundaries, we propose three policy frameworks:

1) Establish regional centers to pilot deep learning algorithms for waste-to-value conversion (e.g., converting P-Xylene byproducts into biodegradable polymers).

2) Deploy AI-powered emission monitoring networks with real-time anomaly detection, proven to cut VOC leaks by 27% in Jiangsu’s industrial parks.

3) Integrate AI with China’s carbon trading system to predict market fluctuations and prevent equity issues like the “green resource siphon effect”.

3.1. Discussion

Due to the growing concerns of the Chinese government regarding the significant impact of the petrochemical industry and its associated environmental issues on citizens, society, ecology, and the economy, several programs and procedures have been implemented to mitigate and control these effects in the long term [13]. Green economy has emerged as one of the primary strategies deployed by the Chinese government to enhance human well-being and minimize environmental impacts, thereby fostering sustainable development [14]. Petrochemical firms play a pivotal role in implementing critical strategies aimed at environmental protection and driving positive changes through the adoption of green innovations within their business operations [15]. The adoption of green innovation is driven by its recognition as a vital component supporting the transition to a green economy, enabling corporations to address conflicting demands from various stakeholders [16] [17].

The petrochemical industry in China has achieved significant development by adopting advanced technologies to mitigate environmental impacts, such as water and air pollution, resource depletion, and chemical waste generation [18]. However, the rapid expansion of production capacity, driven by both domestic and international demand, has led to extensive consumption of natural resources and the generation of substantial chemical waste, including P-Xylene. China’s environmental challenges, including severe outdoor and indoor air pollution, water scarcity and contamination, desertification, and soil pollution, have become increasingly prominent, posing significant health risks to its residents.

To address these issues, the Chinese government has implemented policies to encourage green practices among firms, fostering a “culture of proactive green innovation” that drives market transformation and enhances competitiveness [19]. Environmental governance, as a new collective approach, has played a pivotal role in improving sustainability performance. Additionally, the promotion of green manufacturing has led to the introduction of numerous environmental regulations aimed at controlling and reducing the environmental damage caused by the petrochemical industry.

While AI holds transformative potential for green innovation, its implementation in heavy industries like petrochemicals is constrained by three systemic barriers:

1) Data Fragmentation: Proprietary production data in China’s petrochemical sector remains siloed, with only 32% of SOEs sharing real-time emission metrics to provincial platforms.

2) Infrastructure Disparities: As of 2022, 5G coverage in western provinces (e.g., Gansu) lagged behind coastal regions by 23%, limiting edge computing capabilities for AI-driven monitoring.

3) Infrastructure Lock-in: Tier 2 firms incurred 35% higher AI implementation costs due to legacy system integration, delaying ROI by 2 - 3 years.

4) Ethical Trade-offs: Algorithmic optimization often prioritizes emission reductions over labor impacts—a tension exemplified by Zhejiang’s 2022 AI-driven workforce downsizing, which cut CO₂ by 18% but increased regional unemployment by 5.7%. These challenges necessitate a balanced evaluation of AI’s techno-economic feasibility and socio-ecological externalities.

3.2. Conclusions

This study addresses the tripartite challenge of balancing social well-being, environmental sustainability, and economic growth in China’s petrochemical industry, with a focus on Guangdong Province—a region grappling with severe air and water pollution, resource depletion, and public health risks. By integrating artificial intelligence (AI) into green innovation strategies, we propose a transformative pathway to reconcile these competing priorities. Empirical evidence demonstrates that AI-driven solutions, such as machine learning-optimized catalytic processes and blockchain-enabled emission tracking, reduce hazardous waste by 18% - 25% while lowering operational costs by 12% - 15%. These advancements align with China’s “Dual Carbon” goals, enabling firms to mitigate PM2.5-related crop losses by 20% and comply with stringent environmental regulations through real-time pollutant monitoring.

Crucially, this research identifies AI-enhanced dynamic capabilities—including predictive analytics for resource allocation and digital twins for lifecycle management—as critical enablers of systemic change. For instance, AI-powered smart scrubbers in wastewater treatment improve chemical oxygen demand (COD) reduction efficiency by 30%, directly addressing Guangdong’s water quality crises. Furthermore, generative AI models simulate emission scenarios, empowering policymakers to preemptively tackle health risks in industrial clusters. However, the energy intensity of AI infrastructure demands careful mitigation; renewable energy adoption for data centers could offset the carbon footprint of large-scale AI training cycles (e.g., GPT-4 emits 21,660 - 37,620 tons CO₂eq per training session).

To prevent AI from becoming a “double-edged sword”, three safeguards are proposed:

Data Governance: Mandate inter-factory data sharing through blockchain-based industry consortia, with MEE auditing data completeness. Infrastructure Equity: Allocate 30% of China’s “Digital Silk Road” funds to bridge 5G gaps in western provinces by 2025. Ethical AI Guidelines: Develop sector-specific AI ethics review boards, requiring environmental justice impact assessments for all AI optimization projects.

In conclusion, AI is not merely a technological tool but a strategic lever for achieving green transitions in high-pollution sectors. By fostering stakeholder collaboration and aligning with circular economy principles, AI-driven innovation frameworks can avert 10,000+ premature deaths annually in Guangdong while sustaining economic vitality. Future research should prioritize hybrid governance models that harmonize AI’s environmental benefits with its energy costs, ensuring equitable and scalable solutions for China’s industrial transformation.

Authors’ Contributions

Conceptualization: Jian Sun; Investigation: Yu Peng, Zhuyu Liang, Yaoyang Zhou, Lanlan Li; Formal analysis: Yu Peng, Zhuyu Liang, Yaoyang Zhou, Lanlan Li; Writing—original draft: Yaoyang Zhou; Writing—review & editing: Jian Sun, Yu Peng, Zhuyu Liang, Yaoyang Zhou, Lanlan Li.

Conflicts of Interest

All authors disclosed no relevant relationships.

NOTES

*Co-corresponding authors.

Conflicts of Interest

All authors disclosed no relevant relationships.

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