Artificial intelligence disclosure: evidence from Indian listed companies

Globally, artificial intelligence (AI) is expanding, according to the McKinsey Global Surveys (McKinsey and Company, 2021) series on AI, conducted since 2004, and the state of AI in 2023. The study mainly explores the development of a standardised framework for recording AI disclosure and reporting practices by Indian-listed companies in their annual reports. The study analyses the annual reports of 111 listed companies in NSE over three years (2021-2023) from a qualitative and quantitative perspective. Information was analysed using content analysis. The findings suggest an increasing trend in companies reporting non-financial disclosure practices in annual/sustainability reports. Most companies in the technology and finance sector are adopting AI in the workplace. The ethics guidelines by the European Committee are expected to increase awareness about AI disclosure among companies. However, there is a starting phase; only some companies follow voluntary disclosure policy.