Impact of AI-Driven Risk Management and Organizational Culture on Sustainable Decision-Making: Examining the Moderating Role of Regulatory Framework and Technological Infrastructure in the Construction Sector

Sheeza Ehsan, Mujahid Hussain, Amna Niazi and Hamid Hassan

Sustainable Business and Society in Emerging Economies, 2025, vol. 7, issue 3, 543-562

Abstract: Purpose: This study attempts to understand how the advent of AI in risk management and organizational culture has impacted the construction sector of Pakistan and how do the technological infrastructure and regulatory frameworks would moderate the this relationship. Even though the potential of AI-based tools is immense for sustainability improvements in construction activities, it solely depends on the culture prevailing within that organization and extraneous factors like infrastructure and regulatory policies.Design/Methodology/Approach: This study employs a cross-sectional methodology and collects data from 300 participants through structured surveys with the aim of testing hypotheses related to interrelations among the variables involved.Findings: The results indicated that AIRM has a positive impact on SDM, while organizational culture does not have any significant effect. Moreover, technological infrastructure significantly moderates the relationship between AIRM and SDM, stressing the importance of a solid infrastructure in allowing the employment of AI tools. However, these regulatory regimes have a lesser impact on both since Pakistan's construction industry is already affected by poor implementation and outdated policies.Implications/Originality/Value: The findings from this study suggest the necessity of investing in technological infrastructure, regulatory measures, and social changes toward making the construction industry more sustainable. The study brings significant insights to policymakers, business managers, and researchers for understanding the AI adoption versus sustainability relationship in developing economies.

Keywords: Artificial Intelligence; Sustainability; Technological Infrastructure; Regulatory Framework; Construction Sector (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:sbseec:v:7:y:2025:i:3:p:543-562

DOI: 10.26710/sbsee.v7i3.3451

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