How AI is Changing ESG and Sustainability Reporting

Abstract

This review synthesizes five recent peer-reviewed studies (2024–2025) examining the role of artificial intelligence (AI) in Environmental, Social, and Governance (ESG) and sustainability reporting. Drawing on systematic literature reviews, bibliometric analyses, applied reviews, and one empirical regression study, the paper identifies key AI technologies including machine learning (ML), natural language processing (NLP), IoT, and blockchain that enhance reporting accuracy, automation, and transparency. It maps converging themes around AI-enabled ESG improvements while critically examining divergences, including algorithmic opacity, the social sustainability gap, geographic inequities, and the paradoxical negative short-run effect of AI on ESG scores documented empirically. The paper concludes with an integrated research agenda.