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Artificial Intelligence and Corporate Social Irresponsibility

Corporate Social Responsibility and Environmental Management

Published online on

Abstract

["Corporate Social Responsibility and Environmental Management, EarlyView. ", "\nABSTRACT\nThis study examines whether and how firms' adoption of artificial intelligence (AI) is associated with corporate social irresponsibility (CSI). Ex ante, theories provide conflicting predictions regarding this association, making it an important empirical question. Using a sample of US listed firms, this study finds that AI adoption intensity is associated with higher levels of CSI. Disaggregating CSI reveals positive associations with both business ethics controversies and data privacy controversies, suggesting that AI reinforces human‐induced ethical irresponsibility as well as algorithm‐driven data privacy irresponsibility. However, these associations become negative in firms with a Chief Sustainability Officer (CSO) or Chief Digital Officer (CDO), indicating that AI adoption reduces CSI when implemented with effective domain‐specific executive oversight. Overall, this study provides novel evidence at the intersection of digital transformation and corporate social (ir)responsibility, with important practical implications.\n"]