In a recent article published in Humanities and Social Sciences Communications, researchers have comprehensively explored the intersection of artificial intelligence (AI) investment and sustainable development in the United States, analyzing its impact on economic growth, environmental sustainability, and societal well-being. They investigated whether AI acts as a catalyst for achieving Sustainable Development Goals (SDGs) or presents challenges that could hinder progress, emphasizing the role of venture capital in driving sustainable innovation.
Artificial Intelligence in Sustainable Development
In recent years, AI has emerged as a transformative technology capable of reshaping sectors like energy, healthcare, and agriculture by enhancing efficiency, improving decision-making, and optimizing resource use. Since the United Nations established the SDGs in 2015, global efforts toward sustainability have intensified, focusing on poverty reduction, environmental protection, and equitable economic growth. This research aims to bridge the gap in understanding how AI investment influences SDG achievement in the United States.
About this Research: Assessing Different Types of Investment
In this paper, the authors investigated the impact of venture capital investment in AI, green electricity generation, and gross domestic product (GDP) on sustainable development in the United States. They utilized a quarterly dataset from the first quarter of 2012 to the fourth quarter of 2022, employing the SDG index as a proxy for measuring sustainable development. The study argued that venture capital investment provides a more accurate representation of AI sector growth than merely counting AI firms.
To analyze the data, the researchers applied the nonlinear Autoregressive Distributed Lag (NARDL) model, which allows the examination of both short-term and long-term relationships among the variables. This framework is beneficial for capturing the asymmetric effects of positive and negative shocks in AI investment and other explanatory variables on sustainable development outcomes. To ensure the robustness of the findings, several pre-tests, including the Augmented Dickey-Fuller (ADF) unit root test and the Brock-Dechert-Scheinkman (BDS) test for non-linearity, were conducted before the main analysis.
Key Findings: Impact of AI Investments on Sustainability
The outcomes showed a long-term asymmetric relationship between AI investment, sustainable development, GDP, and green electricity generation in the U.S. Specifically, a 1% increase in AI investment was associated with a 0.26% rise in the SDGs index, underscoring AI's positive role in advancing sustainability. Interestingly, negative shocks in AI investment did not significantly affect the SDGs index, highlighting the importance of sustained investment in AI for achieving long-term sustainability goals.
Image Credit: ercan senkaya/Shutterstock.com
Green electricity generation also contributed positively to the SDGs index, reinforcing the role of renewable energy. However, the authors found that economic growth, as measured by GDP, negatively impacted the SDGs index. This suggests that unchecked economic expansion could lead to resource depletion and environmental degradation. These insights emphasize the need for balanced economic policies integrating AI investment and renewable energy adoption to drive sustainable development.
Potential Real-World Applications
This research has significant implications for policymakers and industry leaders. The findings support continued funding and policies that foster AI-driven research and innovation across various sectors. Integrating AI into sustainability frameworks can optimize resource management, enhance energy efficiency, and enable precision agriculture to reduce waste while maximizing output. These applications align with key SDGs, particularly those related to clean energy and climate action. The researchers highlighted the importance of incentives such as tax breaks and grants for AI development. Responsible integration of AI can enhance decision-making and improve resource efficiency.
Conclusion and Future Directions
This study highlights the key role of AI investment in advancing sustainable development in the United States. Demonstrating a positive correlation between AI investment and progress toward sustainable development goals contributes to a growing body of literature emphasizing technology's importance in addressing global challenges.
These outcomes provide a foundation for further exploration into AI’s role in fostering inclusive growth and environmental stewardship. Future work should examine AI’s specific impact on each of the 17 SDGs for a comprehensive understanding. Expanding the dataset and including other developed economies would enhance the generalizability of the findings.
Overall, the authors emphasized the need for responsible AI deployment and policies that foster AI-driven innovation. By creating an enabling environment for AI, the United States can leverage its transformative potential to address complex global challenges.
Disclaimer: The views expressed here are those of the author expressed in their private capacity and do not necessarily represent the views of AZoM.com Limited T/A AZoNetwork the owner and operator of this website. This disclaimer forms part of the Terms and conditions of use of this website.
Source:
Kirikkaleli, D., Aad, S. & Kirikkaleli, N.O. Sustainable development and investment in artificial intelligence in the USA. Humanit Soc Sci Commun 12, 246 (2025). DOI: 10.1057/s41599-025-04417-7, https://www.nature.com/articles/s41599-025-04417-7