Developing AI and Augmented Intelligence Dynamic Capabilities for Sustainable Development Goal 13 (Climate Action): A Mixed Method Study

This study develops a capability model that integrates Artificial Intelligence (AI) for autonomous data processing and Augmented Intelligence (AugI) for enhanced human-AI collaboration, creating a synergistic dynamic capability for climate action (SDG 13). Further, the study examined the effect of AI and AugI capability for climate action on firm performance. In Study 1, focus groups were used to identify the dimensions of AI and AugI dynamic capability. In Study 2, an empirical design using a survey was employed to test the model. The findings of Study 1 show that regulatory and standards compliance, climate and environmental data management, AI and AugI tools, climate science knowledge and analytics, and human-AI collaboration for climate solutions are first-order reflective constructs that are combined to develop a second-order formative AI and AugI dynamic capability (DCC) construct. The findings of Study 2 show that the relationship between AI and AugI dynamic capability (DCC) and firm performance is positive and statistically significant.