Can Artificial Intelligence help with ESRS disclosures?

Can AI revolutionise ESRS compliance?

In the ever-evolving world of sustainability reporting, leveraging AI to interpret the European Sustainability Reporting Standards (ESRS) is not just a convenience—it's a potential game changer.

 

As sustainability consultants and report preparers know, navigating the complex landscape of ESRS can be time-consuming. Here, AI emerges as a crucial tool, significantly reducing the time required to answer questions about these standards, thereby freeing up valuable resources to tackle more complex analytical tasks.

Utilising AI in this context offers immediate access to information and guidance on ESRS, facilitating quicker decision-making and more efficient report preparation. This technology can analyse vast amounts of data and text, providing precise answers to specific queries about sustainability practices and requirements. This capability not only speeds up the report preparation process but also enhances the quality of the reports by ensuring that all relevant standards are accurately addressed.

ESRS advisor by Koan

However, integrating AI into ESRS interpretation is not without challenges

One major hurdle is the consistency and reliability of AI-generated responses. AI systems, depending on their training data and design, might occasionally deliver varying answers to the same queries. This inconsistency can pose risks when accuracy is paramount. Moreover, the evolving nature of AI technology and sustainability standards means that continuous updates and training are necessary to maintain the system's effectiveness.

Despite these challenges, the potential benefits are undeniable. As AI technology advances, its ability to understand and process complex regulatory information like ESRS will only improve. This progress promises to make AI an indispensable tool for sustainability consultants, who will increasingly rely on it for rapid, reliable insights into sustainability reporting.

While AI in the context of ESRS compliance is still developing, its trajectory points towards a significant positive impact on the field of sustainability reporting. Consultants and organisations willing to adopt this technology early may find themselves at a competitive advantage, equipped with a tool that not only saves time but also improves the accuracy and comprehensiveness of their sustainability reports.

 

How can you get started?

We created our own GPT model, trained on EFRAG data (including the final standards, of course). It is specifically designed for interpreting and applying the ESRS. It helps consultants quickly access accurate ESRS information, enhancing report preparation and compliance. Users can ask it any ESRS-related question, receiving instant, reliable guidance tailored to their needs.

 

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