Integrating AI and Green Leadership: A PESTLE Analysis of Sustainability Practices in Taiwanese Industries

Abstract

This study examines how Artificial Intelligence (AI) and Green Leadership jointly influence sustainability practices in Taiwanese industries. While prior research often treats technological innovation and leadership separately, this study integrates both within a macro-environmental perspective. Using a document analysis approach based on 92 documents of secondary data from academic literature, research papers, government & policy reports, and industry analyses. The findings indicate that AI enhances operational efficiency, decision quality, and green innovation, but also introduces environmental trade-offs due to its energy-intensive infrastructure, revealing a sustainability paradox. Green leadership serves as an important governance mechanism that aligns AI adoption with environmental objectives. The results further show that sustainability outcomes are shaped by the interaction of political, economic, social, technological, legal, and environmental factors as outlined by the PESTLE framework, offering a multi-level understanding of sustainable transformation. The findings provide practical insights for policymakers and industry leaders seeking to balance innovation with environmental responsibility.