Driving Sustainable Value. The Dynamic Interplay Between Artificial Intelligence Disclosure, Financial Reporting Quality, and ESG Scores

Adapting contemporary business models to the challenges of implementing new technologies influences the sustainable value of companies. This study examines the disclosure practices of Romanian-listed companies regarding accounting estimates, their correlation with financial performance, ESG scores, and the use of artificial intelligence (AI). Financial data was gathered from annual reports and those regarding the use of AI on companies’ websites. Financial performance was measured through profitability and liquidity indicators. The results of the statistical regressions showed that company size can influence AI disclosure; however, industry is not a strong predictor, and the number of employees does not significantly influence AI disclosure. A positive relationship was found between AI transparency and the current ratio, suggesting that companies disclosing more information about their AI use may have higher current liquidity. Additionally, a statistically significant negative relationship was observed between the AI disclosure score and net profit, indicating that greater AI transparency is associated with lower net income. The results of interaction analysis proved that there may be a relationship between ESG exposure and financial performance when considering AI disclosure. However, this result may be considered controversial in a more conservative analysis, emphasizing the need for a more nuanced and multidimensional approach.