Exploring the Role of Artificial Intelligence in Combatting Greenwashing: A Bibliometric Analysis

Abstract

Artificial Intelligence (AI) offers significant potential for companies aiming to adopt eco-friendly business practices. By leveraging AI for energy-efficient operations, businesses are increasingly focusing on reducing the environmental impact of their digital infrastructures. This paper explores the ways AI can improve environmental outcomes across multiple industries. However, some corporations use exaggerated marketing claims about the environmental benefits of their AI applications, resulting in misleading narratives.

This research uncovers the rise of "AI hype" within corporate environmental reporting. AI hype refers to the overstatement or misrepresentation of the environmental advantages of AI, which leads to "greenwashing." This occurs when companies exaggerate the ecological benefits of their AI and machine learning implementations. Our findings indicate that companies engaging in AI hype are more likely to mention environmental topics in their reports, while simultaneously contributing to rising levels of pollution at their plants. This pattern is observed across various sectors, demonstrating that the issue of AI hype is widespread. Such actions could erode public trust and damage reputations, potentially leading to legal challenges and hindering future innovation efforts. As more resources are funnelled into AI research and development, it is crucial for regulators, leaders, and investors to be mindful of the potential dangers posed by AI hype.