How generative AI reshapes sustainability reporting: Insights from an action design research study

Abstract This paper examines how generative artificial intelligence (GenAI) can be designed and embedded into sustainability reporting workflows to support and transform organizational sensemaking. Small and medium-sized enterprises (SMEs) often struggle with complex reporting requirements and limited sustainability expertise, creating a need for digital support systems. Following an Action design research (ADR) approach, we developed and iteratively refined a GenAI-enabled sustainability reporting assistant and evaluated it across multiple organizational cases. Our findings show that GenAI can support traditional sensemaking activities by structuring information, offering contextual guidance, and lowering cognitive barriers. Beyond this supportive role, GenAI can also actively trigger sensemaking by introducing new perspectives, prompting reflection, and facilitating joint human-AI interpretation. At the same time, GenAI outputs can reduce the depth of users’ engagement and shape which sustainability framings prevail. We contribute to digital sustainability and sensemaking support system literature by deriving design principles for GenAI-enabled sustainability reporting assistants and demonstrating their influence on sustainability reporting practices. The study offers practical implications for integrating GenAI into reporting workflows and highlights avenues for future research.