Abstract
The increasing emphasis on environmental sustainability has encouraged organizations to adopt innovative technologies that support green business practices. Artificial Intelligence (AI) has emerged as a transformative technology capable of enhancing green innovation, optimizing resource utilization, reducing environmental impacts, and promoting sustainable business transformation. This study investigates the role of AI in driving green innovation and its influence on sustainable business transformation. A quantitative research design was employed, and primary data were collected from 420 managers, sustainability professionals, and business executives from various industries in India. Statistical tools including descriptive analysis, chi-square analysis, cluster analysis, and Structural Equation Modeling (SEM) were utilized to examine the relationships among AI adoption, green innovation, and sustainable business transformation. The findings reveal that AI significantly contributes to green innovation by improving energy efficiency, waste reduction, sustainable product development, and environmental decision-making. The study concludes that organizations integrating AI-driven green innovations achieve superior sustainability performance and long-term competitive advantages.