Artificial intelligence (AI) has become an important driver of digital transformation in firms, yet its implications for corporate environmental performance remain unclear. Using panel data on Chinese A-share listed companies from 2008 to 2023, this study examines the effect of AI adoption on corporate green transformation. We find that AI adoption significantly promotes green transformation by enhancing firms’ information processing, decision-making, and operational efficiency. The effect is stronger for firms in low-pollution industries, those located in eastern and western regions, and firms in non-resource-based cities. Further analysis shows that green technological innovation and human capital upgrading act as key transmission channels, while organizational resilience and environmental regulation strengthen the impact of AI. These findings provide new evidence on the environmental role of AI and contribute to the literature on the link between digitalisation and green transformation. The study also offers policy implications, highlighting the role of supportive regulation and targeted incentives in promoting the effective use of AI for environmental management and sustainable innovation.