["Business Strategy and the Environment, EarlyView. ", "\nABSTRACT\nAlthough prior studies have examined the relationship between digital transformation and ESG performance, they have yet to systematically uncover the non‐linear impact of digital intelligence transformation on ESG performance, making it difficult to fully explain how digital intelligence transformation translates into ESG performance across different contexts. To address this gap, this study investigates how digital intelligence transformation can enhance ESG performance through sustainable business model innovation, thereby extending the existing literature. Grounded in the natural resource‐based view and disruptive innovation theory, this study empirically examines panel data from Chinese A‐share‐listed firms from 2011 to 2021. The results reveal a significant U‐shaped relationship between digital intelligence transformation and ESG performance, with this effect more pronounced in large non‐state‐owned enterprises. Further analysis shows that sustainable business model innovation mediates this relationship, while green absorptive capacity positively moderates the relationship between sustainable business model innovation and ESG performance. Overall, this study unveils the non‐linear mechanisms and boundary conditions underlying the impact of digital intelligence transformation on ESG performance, offering new theoretical insights and practical implications for firms pursuing digital sustainability.\n"]