ETHICAL

THE ETHICAL AND ESG IMPLICATIONS OF GENERATIVE ARTIFICIAL INTELLIGENCE IN SUSTAINABILITY

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Abstract
The study investigated the ethical and environmental, social, and governance implications of generative artificial intelligence on sustainability practices in Nigeria. The rapid adoption of generative AI has created both opportunities and concerns for organisations striving to enhance sustainable development. The study examined how ethical considerations, environmental responsibility, social impact, and governance practices influence the effective integration of generative AI into sustainability initiatives. A descriptive survey design was adopted. Data were collected from 120 respondents who met the benchmark criteria related to AI, sustainability, and governance. A structured questionnaire was used to assess ethical considerations, environmental outcomes, social effects, governance structures, and sustainability practices. Data were analysed using descriptive statistics, correlation analysis, variance inflation factors, heteroskedasticity diagnostics, and multiple regression at the 5 percent significance level. The findings revealed that ethical considerations significantly improved sustainability practices. Environmental impact demonstrated a meaningful positive influence, indicating that AI-enabled environmental optimisation contributes to sustainability. Social impact also enhanced sustainability practices through inclusiveness, trust building, and knowledge improvement. Governance practices exerted a strong positive effect, showing that oversight, policy compliance, and responsible AI governance are essential for achieving sustainable outcomes. Together, the predictors explained 57.2 percent of the variation in sustainability practices. The study concludes that responsible generative AI adoption depends on ethical values, environmental responsibility, social inclusion, and strong governance structures. Organisations can only achieve sustainable outcomes when AI systems are developed and deployed within these guiding dimensions. The study recommends strengthening ethical frameworks, improving environmental safeguards, promoting socially responsible AI practices, and enhancing governance structures to support sustainable AI integration in Nigeria.
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