Cited by 197Ethics and Social Impacts of AIDigitalization, Law, and RegulationInnovation, Sustainability, Human-Machine Systems

The DOI matches its Crossref record; 82 of the 82 references it cites were found in a registry or an index; none of the 118 sources its claims cite is checked for support yet.

Artificial Intelligence and Sustainable Decisions

Open access
Zhao, Jingchen, Gómez Fariñas, Beatriz·2023·European Business Organization Law Review

Abstract

When addressing corporate sustainability challenges, artificial intelligence (AI) is a double-edged sword. AI can make significant progress on the most complicated environmental and social problems faced by humans. On the other hand, the efficiencies and innovations generated by AI may also bring new risks, such as automated bias and conflicts with human ethics. We argue that companies and governments should make collective efforts to address sustainability challenges and risks brought by AI. Accountable and sustainable AI can be achieved through a proactive regulatory framework supported by rigorous corporate policies and reports. Given the rapidly evolving nature of this technology, we propose a harmonised and risk-based regulatory approach that accommodates diverse AI solutions to achieve the common good. Ensuring an adequate level of technological neutrality and proportionality of the regulation is the key to mitigating the wide range of potential risks inherent to the use of AI. Instead of promoting sustainability, unregulated AI would be a threat since it would not be possible to effectively monitor its effects on the economy, society and environment. Such a suitable regulatory framework would not only create a consensus concerning the risks to avoid and how to do so but also include enforcement mechanisms to ensure a trustworthy and ethical use of AI in the boardroom. Once this objective is achieved, it will be possible to refer to this technological development as a common good in itself that constitutes an essential asset to human development.

Overview

AI snapshot

Written from the paper’s full text.

TL;DR

The paper argues AI is a double-edged sword for corporate sustainability: it can support CSR and SDG progress, but also creates bias, opacity, data monopolisation and ethical risks. It proposes a harmonised, risk-based regulatory framework with enforcement to ensure trustworthy, sustainable AI in the boardroom and treat AI as a common good.

Key findings

  • AI can act as an enabler on 134 targets (79%) across all SDGs, but the paper identifies risks including data bias, lack of transparency/“black-box” systems, monopolisation of data and expertise, and conflicts with human ethics.
  • Data-driven decision-making is associated with corporate benefits: companies using it are estimated to be, on average, 6% more profitable and 5% more productive than competitors.
  • The regulatory landscape is fragmented: more than 84 initiatives describe AI principles and values, but they lack enforcement mechanisms; the paper proposes a harmonised, risk-based approach with low-risk flexible/voluntary codes, medium-to-high-risk standards with disclosure, and comprehensive regulation for high-risk systems.
  • Sustainable AI should address the entire AI life cycle; training one natural language processing model can result in more than 600,000 lb of CO₂ emissions, so environmental costs should be justified by intended benefits.

Methods

  • Doctrinal and policy analysis: the paper reviews CSR, corporate law, AI governance and regulatory instruments rather than conducting an empirical study.
  • It draws on legal and policy sources such as the UK Companies Act 2006, EU AI regulation proposals, OECD materials, case law, and secondary literature to build a normative argument.
  • No dataset, sample, population, or statistical test is used; the proposed risk-based framework is argued conceptually rather than tested.

Limitations

  • The paper states it does “not have space to explore this in depth in this article” regarding the risk-based regulatory approach.
  • It notes that AI lacks a universally accepted definition, the technology is rapidly evolving, there is no one-size-fits-all solution, and current regulatory approaches are fragmentary and inconsistent.
  • Evident from the text: the article is normative and conceptual, with no empirical validation of the proposed framework and heavy reliance on secondary sources and illustrative examples.

Model-written summary. Check it against the paper before relying on it.

Integrity signals

Registry

Crossref · 10.1007/s40804-022-00262-2

Cites

82 of 82 references verified0 citation errors · 0 not checkable

Statistics

Nothing to recompute.

Verification

Claims the paper makes

104 Not checked yet · 100 Own interpretation · 25 No basis given

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  • Probably not a substantial claim. 149
  • It may state two separate claims as one. 79
  • The quote only partly states this claim. 1
177 of 177
  • The paper relies on this without support.

    The use of AI technologies is in companies' best interest.

    “Bearing in mind that the use of these technologies is in companies' best interest, the board might be falling short in meeting its duty of care if, considering a case's specific circumstances, it would be reasonable to implement them to improve directors' actions.”
  • The paper relies on this without support.

    Currently, there is no regulation governing the data used to train algorithms.

    “Currently, there is no regulation governing the data used to train algorithms, whereas its owners can easily manipulate data.”
  • The paper relies on this without support.

    The ethical and legal risks inherent to the use of AI and the lack of clear responses to address them create uncertainty and even some fear in using this technology in the heart of the company.

    “The ethical and legal risks inherent to the use of AI and the lack of clear responses to address them create uncertainty and even some fear in using this technology in the heart of the company.”
  • The paper relies on this without support.

    The implementation of AI-based solutions in the boardroom depends on an atmosphere of trust and certainty.

    “the implementation of AI-based solutions in the boardroom depends on an atmosphere of trust and certainty”
  • The paper relies on this without support.

    Many companies, notably tech companies, operate at an international level and usually have to comply with the rules of various legal systems.

    “many companies-notably tech companies-operate at an international level and usually have to comply with the rules of various legal systems.”
  • The paper relies on this without support.

    The implications that stem from the relation between AI and sustainability have not been fully considered yet.

    “The implications that stem from the relation between AI and sustainability have not been fully considered yet.”
  • The paper relies on this without support.

    Implementing AI-based solutions has the potential for a win-win across business and society.

    “implementing AI-based solutions has the potential for a win-win across business and society.”
  • The paper relies on this without support.

    AI may support or replace humans in situations where technology is more likely to make a better and more informed decision, where decisions have to be made quickly, or where the process is complicated and requires a large amount of data that humans are unable to process.

    “AI may also support or replace humans in situations where technology is more likely to make a better and more informed decision, where decisions have to be made quickly or where the process is complicated and requires a large amount of data that humans are simply unable to process.”
  • The paper relies on this without support.

    AI can be programmed to act in a way that aligns with the organisation's core values.

    “Finally, AI can be programmed to act in a way that aligns with the organisation's core values.”
  • The paper relies on this without support.

    AI offers an opportunity for directors and companies to promote their CSR portfolio and manage the CSR programme in active collaboration with internal and external stakeholders informed by big data.

    “AI offers a fantastic opportunity for directors and companies to promote their CSR portfolio and manage the CSR programme in active collaboration with internal and external stakeholders informed by big data.”
  • The paper relies on this without support.

    Big data will help the board of directors induce predictive CSR policy that fits the stakeholder network and stakeholder priorities for companies' business model, enabling both informed and supportive predictions and improving trust with constituents.

    “Big data will help the board of directors induce predictive CSR policy that fits the stakeholder network and stakeholder priorities for companies' business model, enabling both informed and supportive predictions and improving trust with constituents.”
  • The paper relies on this without support.

    The current scenario is characterised by the existence of fragmentary and inconsistent approaches to AI regulation.

    “The current scenario is characterised by the existence of fragmentary and inconsistent approaches.”
  • The paper relies on this without support.

    Like other countries such as the US and the UK, the European Union has actively worked on a harmonised framework to regulate AI.

    “Like other countries, such as the US and the UK, the European Union has actively worked on a harmonised framework to regulate AI.”
  • The paper relies on this without support.

    The result of the European Union's efforts was a proposal for a regulation launched on 24 April 2021.

    “As we will explain below, the result of such efforts was a proposal for a regulation launched on 24 April 2021.”
  • The paper relies on this without support.

    AI is a complex and immature technology.

    “The problem, however, is that we cannot pretend to regulate such a complex and immature technology with a fragmentary regulatory context.”
  • The paper relies on this without support.

    There is no harmonised regulation for AI yet.

    “The second problem, and probably one of the main reasons why there is no harmonised regulation yet, is the vast influence of the private sector.”
  • The paper relies on this without support.

    It would not be possible to effectively monitor AI's effects on the economy, society and the environment if AI is unregulated.

    “because it would not be possible to effectively monitor its effects on the economy, society and the environment”
17 of 17

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Citations

Cites

Show all 79 references

Research works printed but not linked: 26

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Metadata

Authors
Zhao, J., & Gómez Fariñas, B.
Affiliations
Guangdong University Of Finances and Economics (CN)
Corresponding author
Zhao, Jingchen
Venue
European Business Organization Law Review
Published
2022-11-28
Volume
24
Issue
1
Pages
1-39
ISSN
  • 1566-7529 (ISSN-L)
  • 1741-6205
OpenAlex
W4310118256
Cited by
197
References
79
Citations by year
2026: 49 · 2025: 79 · 2024: 58 · 2023: 11
FWCI
42.93
Type
journal article
Language
en
Open access
Locations
  • European Business Organization Law Review (publishedVersion, cc-by)
  • Nottingham Trent University's Institutional Repository (Nottingham Trent Repository) (acceptedVersion)
Topics
  • Physical Sciences › Computer Science › Artificial Intelligence › Ethics and Social Impacts of AI
  • Social Sciences › Law › Digitalization, Law, and Regulation
  • Physical Sciences › Environmental Science › Management, Monitoring, Policy and Law › Innovation, Sustainability, Human-Machine Systems
Keywords
artificial intelligence, corporate sustainability, AI regulation, risk-based regulation, algorithmic bias, ethical use of AI, corporate governance, regulatory harmonization, technological neutrality, proportionality, accountability, common good, environmental and social risks

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