IMPACT OF GENERATIVE AI ON FINANCIAL REPORTING: EFFICIENCY ANALYSIS AND COMPLIANCE WITH EU ENVIRONMENTAL REGULATIONS

Abstract

This study investigates the potential of Generative AI—particularly ChatGPT—in transforming financial and sustainability reporting. Through a mixed-methods approach involving AI simulations, document comparisons, and theoretical analysis, the research evaluates the extent to which ChatGPT enhances efficiency and supports compliance with EU environmental regulations, especially the Corporate Sustainability Reporting Directive (CSRD). The findings reveal significant reductions in reporting time and highlight the tool’s ability to summarize ESG disclosures effectively. However, limitations persist, particularly regarding data accuracy, access to internal systems, and the need for human oversight. The study concludes that while ChatGPT offers strategic value for organizations, its implementation must be carefully managed within regulatory and ethical frameworks.