Artificial Intelligence Adoption and Sustainable Business Performance: The Mediating Role of Operational Efficiency

Organizations face huge pressure to adopt intelligence while improving sustainability and ESG performance. This study analyzes how artificial intelligence adoption relates to business performance, and it tests whether operational efficiency acts as the link between the two. By analyzing dynamic capability theory, the study is based on an explanatory research approach. The collection of data through a survey of managers and executives from five industries: manufacturing, information technology, banking and financial services, retail, and agriculture. The questionnaire is designed to assess intelligence adoption, operational efficiency, and sustainable/ESG performance using validated five‑point Likert scales. The expected finding is that artificial intelligence adoption will show a link to sustainable business performance. Operational efficiency is expected to explain this link, suggesting that artificial intelligence improves sustainability mainly by improving operational processes rather than through a direct effect. The results give managers a clear path: focus on artificial intelligence projects that clearly boost operational efficiency. This approach is likely to produce greater sustainability gains than adopting artificial intelligence without improving operational processes. Previous researchers has explored change as a bridge between artificial intelligence and sustainability. This study aims to identify operational efficiency as the exact mediator, giving a more detailed and useful explanation of how artificial intelligence creates sustainable business value.