“The Dual Role of Artificial Intelligence in Corporate Greenwashing: A Literature Review and Future Research Directions”

Document Type : Research Paper

Authors

Islamic Azad University, Arak Branch

Abstract

This review article analyzes the bifurcated role of Artificial Intelligence (AI) in corporate greenwashing, assessing its potential both as a genuine enhancer of environmental sustainability and as a sophisticated mechanism for fabricating misleading environmental claims. The core objective is to scrutinize the existing theoretical and empirical evidence regarding AI’s functions and its capacity to either expose or amplify greenwashing practices. The methodology employed is a systematic literature review, drawing upon studies from reputable international databases using empirical, conceptual, and theoretical approaches, with findings categorized around the central theme of AI’s dual function.



The research indicates that the ultimate impact of AI deployment is contingent upon several organizational and regulatory factors, including corporate governance, management incentives, regulatory frameworks, and data transparency quality. Critically, while AI possesses the capability to deliver high transparency, effectively detect deceptive claims, and genuinely boost sustainability performance, its opportunistic application can severely reinforce greenwashing, rendering it more intricate and significantly harder to trace.



The overarching conclusion emphasizes that the future role of AI in environmental sustainability is determined not by the technology itself, but by the implementation strategies, the robustness of reporting standards, regulatory oversight, and organizational incentives in place. For future research, the study recommends a pivot toward empirical investigations, the development of AI-based metrics for greenwashing assessment, the evaluation of institutional impacts, and long-term analyses of technology governance consequences.

Keywords

Main Subjects

Journal of Environmental and Natural Resource Economics
Volume 5, Issue 12
January 2026

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History

  • Receive Date: 19 November 2025
  • Revise Date: 25 December 2025
  • Accept Date: 26 December 2025

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