Tech for good? evaluating the ESG outcomes of AI-related disclosure in U.S. firms

In the context of the ongoing digital transformation, this study examines whether AI-related disclosure intensity is associated with ESG performance among publicly listed U.S. firms. Using 58,880 firm-year observations from 2014–2023, we construct a disclosure-based AI Disclosure Index from firms’ MD&A sections and annual reports through text analysis of AI-related terminology. The results indicate a positive association between AI-related disclosure intensity and overall ESG scores, particularly for the environmental and social pillars, while the governance pillar shows no statistically significant relationship. Because both the AI measure and ESG ratings rely heavily on publicly disclosed information, the findings should be interpreted as evidence of association rather than causal effects of AI disclosure. The study contributes to the literature by clarifying how AI-related corporate communication is linked to ESG evaluations in U.S. capital markets.