New research from the University of Westminster shows that when organisations take the time to consider the ethical implications of artificial intelligence (AI), they ultimately become more productive and generate more innovations.
The study, published in the Journal of Product Innovation Management (JPIM), is titled Responsible Artificial Intelligence Attention and Firm Innovation: An Attention-Based View. It was authored by Dr Mengran Xiong, Lecturer in Marketing at Westminster Business School, in collaboration with academics from Loughborough University, the University of Sheffield, Wuhan University and Kyung-Hee University.
The researchers found that firms whose top management teams actively engage with responsible AI practices produce a greater number of innovations and generate higher-impact patents. Through their findings they highlight that ethical attention enables leaders to allocate resources more effectively, build the human capabilities required for AI adoption and reduce risks that often hinder innovation.
To investigate this, the team analysed 2,452 earnings call transcripts from Standard & Poor's (S&P) 500 companies — the 500 largest and most influential publicly traded companies in the United States — between 2011 and 2021, and compared them with patent data. They discovered that firms whose leaders emphasised responsible AI produced more patents.
These benefits were especially evident in industries not traditionally focused on technology and in companies facing short-term investor pressure. In such environments, thoughtful reflection helps prevent rushed, risky decisions. The findings challenge the idea that ethical scrutiny slows progress, showing instead that responsible AI creates the conditions for more sustainable and confident innovation.
Dr Xiong said: “It is important for organisations to pause and think carefully about the ethics of AI because this attention directly influences how well they innovate. I hope our work encourages business managers to view responsible AI as a strategic priority rather than a compliance exercise. Our findings show that attention to responsible AI strengthens innovation performance even in challenging environments, while simply appointing a Chief Technology Officer is not enough on its own.
“When ethical considerations are integrated into everyday decision-making, for example through cross-functional governance, ethics checkpoints in project workflows and shared responsibility across the leadership team, organisations are better positioned to develop and use AI in ways that are both competitive and socially responsible. This benefits firms, their stakeholders and the wider public. If our research helps organisations take a more balanced and forward-looking approach to AI, that would be a meaningful contribution.”
The research directly contributes to the United Nations Sustainable Development Goals (SDG) 9: Industry, Innovation and Infrastructure and 12: Responsible Consumption and Production. Since 2019, the University of Westminster has used the SDGs holistically to frame strategic decisions to help students and colleagues fulfil their potential and contribute to a more sustainable, equitable and healthier society.
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