Artificial Intelligence Governance and Sustainable Industrial Transformation in the Era of Industry 5.0

Abstract

The rapid expansion of artificial intelligence (AI), robotics, big data analytics, and intelligent industrial systems has accelerated global industrial transformation. While Industry 4.0 emphasised automation and efficiency, concerns regarding inequality, labour displacement, cybersecurity, and environmental sustainability have intensified the need for more human-centred industrial systems. Industry 5.0, therefore, emerges as a sustainable and resilient paradigm integrating technological innovation with human well-being, ethical governance, and environmental responsibility. This study examines the role of AI governance in promoting sustainable industrial transformation within Industry 5.0. A conceptual and integrative literature review approach was adopted using secondary data from peer-reviewed articles, policy reports, and institutional publications. The findings reveal that AI enhances industrial efficiency, predictive maintenance, circular-economy practices, and resilience, while also raising governance and ethical challenges. The study proposes a Human-Centric AI Governance Framework and recommends transparent, ethical, inclusive, and sustainable AI governance systems aligned with Sustainable Development Goals (SDGs). As a conceptual synthesis, the proposed framework has not yet been empirically validated and should therefore be tested in future research across different industrial and institutional contexts.