CAREC Institute Presents Research on AI and Green Innovation

The CAREC Institute presented research on how artificial intelligence can support firms’ green innovation at an international scientific conference in Ashgabat, Turkmenistan, which was held on 10–12 October 2026. The study, “AI Technologies and Firms’ Green Innovation: Lessons from the PRC Experience,” was presented in Section XVI, “Digital Economy as Important Condition for Sustainable Development,” hosted by the Turkmen State Institute of Economics and Management. Dr. Asif Razzaq, Senior Research Specialist at the CAREC Institute, presented the study.

Using data from about 4,000 Chinese A-share listed firms from 2012 to 2022, the study finds that AI significantly increases green innovation, with the result remaining robust after endogeneity and other checks. It identifies four channels: lower managerial short-termism, lower management costs, less greenwashing, and higher research and development efficiency.

The gains are strongest in private firms, high-tech firms, and firms led by executives with international experience. The findings highlight the importance of reliable environmental data, credible disclosure and verification rules, and management capacity to translate digital capabilities into long-term innovation in CAREC economies. The presentation linked digital transformation with the Institute’s wider work on green growth and productivity.