While mineral resources significantly bolster the wealth of certain regions, such as the north of Europe, they also represent a paradox where wealth leads to conflicts rather than fostering local development. This situation is further complicated by the clash between sustainable development ideals and the reality of survival, which inadvertently strengthens support for mining in local governance. Furthermore, the concept of green growth, which suggests that economic expansion and environmental sustainability can coexist harmoniously, is still under scrutiny. These factors collectively spotlight a complex dilemma: balancing the promise of sustainable development and green transition against the challenges of promoting local development and environmental stewardship. Addressing this emerging complexity requires participatory and inclusive approaches to citizen engagement, not only to democratize societies, but also to achieve the higher levels of intelligence required for decision-making and governance. However, there is a considerable lack of knowledge about the latter, so this paper stresses the pervasiveness of information and communication technologies, which allows for leveraging digital spaces for dialogue and collaborations among stakeholders. To bridge this gap between digital and social innovation, this paper reviews the literature to answer the question of how innovative digital technologies support addressing such societal development dilemmas collaboratively. A specific focus is on how AI-enhanced digital platforms can contribute to overcome the associated problems in society and foster innovative, informed, and transformative approaches to environmental sustainability and co-governance practices. It highlights the necessity of harnessing the synergy between human and artificial intelligence on these platforms.