Amidst the ongoing artificial intelligence (AI) technology revolution, businesses are increasingly embracing AI and environmental social and governance principles. This integration leads to sustainable business operations, improved efficiency, and enduring value creation to address global challenges. Therefore, this study explores that how AI technology enhance firm ESG performance through firm life cycle stages. By analyzing a sample of Chinese A-share listed firms from 2010-2020, the study primary findings reveal that AI technology significantly improves firm ESG performance, emphasizing the importance of technological advancements in ESG initiatives. Furthermore, the study reveals that the impact of AI on ESG is more pronounced during the growth and mature stages of the firm cycle compared to the introduction, decline and shakeout stages. Additionally, the study investigates this impact through two channels: AI enhances green innovation and firm performance, which in turn enhance ESG performance. Moreover, heterogeneity analysis highlighting a more pronounced effect in non-SOEs compared to SOEs, and in low bank concentration and robustness analysis through 2SLS and PSM.