AI in Management Controlling Systems: Sustainability Reporting Practices in European Companies

Abstract

The digital transformation of management controlling systems and the introduction of mandatory sustainability reporting under the European Corporate Sustainability Reporting Directive (CSRD) represent two converging forces that are fundamentally reshaping corporate governance in Europe. While artificial intelligence (AI) has been widely discussed as a driver of efficiency and predictive capability in controlling, and ESG reporting has been extensively examined from a regulatory and compliance perspective, existing literature treats these phenomena largely as separate research streams. Empirical evidence on how AI-enabled controlling systems are mobilized to support sustainability reporting in a post-CSRD context remains limited.

This study addresses this gap through a qualitative content analysis of sustainability and annual reports published between 2022 and 2024 by a purposive sample of 40 European companies, comprising 30 firms listed in the Euro Stoxx 50 index and 10 companies listed on the Bucharest Stock Exchange. Drawing on organizational control theory and a four-stage digital maturity model of the controlling function (Manual–Automated–Predictive–Cognitive), the analysis applies a deductive coding framework across three dimensions: AI tools deployed in controlling, ESG data quality mechanisms, and the transformation of the controller’s professional role.

The findings reveal a substantial digital maturity gap between Western European and Romanian companies. Leading firms such as Siemens, SAP, and Schneider Electric operate at predictive to cognitive maturity levels, leveraging AI not only to automate ESG data collection but also to support prescriptive sustainability controlling and governance mechanisms, including the integration of ESG metrics into executive compensation. Romanian companies remain predominantly at the automated stage, although notable exceptions demonstrate that regulatory pressure and access to international standards are stronger predictors of maturity than geographic origin.

The study contributes a comparative framework for assessing AI–controlling–ESG integration maturity and provides novel empirical insights into the evolving role of managing controllers under CSRD-driven sustainability reporting requirements.