AI for sustainability, governance and compliance: from initial applications to widespread use

AI for sustainability, governance and compliance: from initial applications to widespread use

Study shows: AI is still rarely integrated into business processes

Artificial intelligence is becoming increasingly important for sustainability, governance, and risk and compliance management. Many companies have introduced initial applications or are working on relevant projects. At the same time, the widespread integration of AI into existing processes is still in its infancy in many places.

Our study “AI in Sustainability and Governance: Managing Risks, Ensuring Compliance” shows how companies are using AI today, which use cases have already become established, and what challenges stand in the way of wider adoption.

The study is based on a survey of companies in Germany, Austria and Switzerland. The results show where companies stand today and what conditions need to be created so that AI can realise its potential in sustainability, risk and compliance processes.

Get the full study results (in German only), including the latest data, practical insights and the key success factors and challenges associated with the use of AI.

Five key findings from the study

82 per cent of companies rate AI as highly or very highly relevant in an ESG context. Nevertheless, only around one in four companies currently uses AI actively.

Companies have recognised the importance of AI. However, implementation is progressing step by step. Many companies are currently gaining initial experience or working on specific projects.

More than half of companies with ongoing AI initiatives are already using AI in clearly defined areas of application or are planning such applications.

Areas of application such as sustainability reporting, data management and compliance are particularly widespread. Companies are starting where large volumes of data can be processed more quickly and manual effort reduced.

86 per cent of companies see efficiency gains as the most important benefit of AI in the ESG context.

Support with regulatory requirements and the early detection of risks are also among the most important expectations. New business models or innovation, by contrast, have so far played a significantly smaller role.

71 per cent of companies cite data quality as a key barrier to the use of AI.

In addition to the quality and availability of data, companies are primarily concerned with issues relating to data security, regulatory requirements and organisational implementation.

Many companies have established initial applications. The real challenge now lies in integrating these permanently into sustainability, governance and compliance processes.

To achieve this, data, processes and governance structures must be developed further in tandem. Only then can AI realise its potential beyond individual use cases.

Partner, Regulatory Advisory, Sustainability Reporting & Governance

KPMG AG Wirtschaftsprüfungsgesellschaft

Partner, Audit, Global & EMA ESG Reporting Advisory Lead, Head of ESG Germany, Head of Sustainability Reporting & Governance Germany

Partner, Audit, Regulatory Advisory, Sustainability Reporting & Governance, ESG Reporting

Partner, Audit – Regulatory Advisory, Sustainabiity Reporting & Governance