THE ROLE OF AI IN ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) ACCOUNTING: INSIGHTS FROM GHANA-BASED CORPORATIONS

This study explores the transformative role of Artificial Intelligence (AI) in Environmental, Social, and Governance (ESG) accounting among Ghana-based corporations, addressing a critical gap in technological adoption and sustainability compliance. The urgency of this research lies in Ghana’s lagging ESG transparency, with less than 10% of firms utilizing AI in ESG reporting as of 2023-hindering investor confidence and sustainable growth. The study aimed to assess how AI tools enhance ESG data accuracy, reporting timeliness, and overall performance across corporate sectors. A descriptive research design based on secondary data was employed, analyzing ESG metrics from over 8,000 registered firms using SPSS and regression modeling. Statistical findings show significant improvements in ESG indicators post-AI adoption: environmental data accuracy rose from 65% to 85%, social metrics like employee diversity improved from 55% to 75%, and governance transparency jumped from 60% to 78%. A Pearson correlation coefficient of r = 0.68 (p < 0.05) confirms a strong positive relationship between AI adoption and ESG score improvement. Additionally, the regression model ESG Score = 58.4 + 0.91(AI Adoption Rate) (R² = 0.46) demonstrates that for every 1% increase in AI adoption, ESG scores improve by approximately 0.91 points. The study concludes that AI significantly improves ESG accounting quality, accelerates reporting cycles, reduces operational costs, and boosts investor confidence. It recommends national policy incentives, sector-wide AI adoption, and training programs to overcome integration barriers. These findings have far-reaching implications for ESG policy, corporate governance, and sustainable investment strategies in emerging economies.