The role of Artificial Intelligence in Driving FinTech and Green Innovation in promoting Corporate Green Finance--Evidence from China

This study systematically investigates the mechanisms through which artificial intelligence (AI) influences corporate green finance, contributing to the broader development of green finance. Recognizing the pivotal roles of FinTech and green innovation in the green finance ecosystem, this research explores their mediating effects in the relationship between AI adoption and green financial development. Utilizing a comprehensive panel dataset of Chinese A-share listed firms from 2013 to 2023, the analysis employs mediation analysis and advanced econometric models to evaluate both the direct and indirect impacts of AI on green finance. The empirical findings reveal that AI significantly enhances firms’ green financial performance and concurrently stimulates advancements in FinTech capabilities and green innovation initiatives. Notably, the direct effect of AI on green finance diminishes upon the inclusion of mediating variables, suggesting the presence of robust mediation pathways. These results underscore the intertwined and reinforcing relationship among AI, FinTech, and green innovation in fostering corporate green finance. Accordingly, firms are advised to integrate AI-driven strategies with targeted investments in FinTech infrastructure and green innovation development to effectively contribute to a sustainable and resilient green finance ecosystem.