Artificial intelligence and sustainability reporting in practice: projections from an intellectual capital perspective

Purpose – This paper aims to explore the possible interactions between artificial intelligence (AI), intellectual capital (IC) dimensions – human, organizational and relational – and sustainability reporting practices. While AI is increasingly recognized as a transformative technology with the potential to reshape decision-making, knowledge management and reporting processes, limited empirical research has examined how it influences the human, organizational and relational resources underpinning sustainability disclosure. Design/methodology/approach – This study adopts a qualitative case study approach focusing on two Italian medium-sized manufacturing firms that prepare sustainability reports and are initiating AI adoption. Data were collected through semi-structured interviews with those responsible for sustainability reporting and triangulated with additional interviews, corporate documents and sustainability reports to ensure a comprehensive analysis. Findings – The results show that AI adoption in sustainability reporting is perceived to reshape human, organizational and relational capital, generating both opportunities and tensions. Dual pathways of human capital development emerge, while the evolution of organizational capital is expected to depend on the degree of information system integration and, particularly in medium-sized enterprises, on the responsiveness and timeliness of external technology providers. AI is envisaged to enhance sustainability reporting accuracy and comparability but may undermine contextual interpretation and the interactive use of sustainability reporting as a space for dialogue and learning. Finally, it expands stakeholder engagement, though it carries the risk of challenging authenticity and trust. Originality/value – This study contributes to the growing literature on AI in sustainability reporting by providing empirical evidence of how AI adoption may influence the configuration and development of IC. It further extends research on IC management by illustrating how AI can redefine the knowledge resources implicated in sustainability disclosure practices.