AI in ESG & Sustainability Market Set to Surge to US$ 846.75 Billion by 2032, Driven by Generative AI and Regulatory Push | According to DataM Intelligence Research Report

HYDERABAD, India, Aug. 28, 2025 /PRNewswire/ -- "The AI in ESG & Sustainability Market Size reached US$ 182.34 billion in 2024 and is projected to reach US$ 846.75 billion by 2032, registering a robust CAGR of 21.16% during the 2025–2032 period", as reported by DataM Intelligence. This surge underscores how artificial intelligence is rapidly transforming corporate strategies around environmental, social, and governance practices, enabling forward-looking sustainable growth and heightened ethical transparency.

AI Technologies Powering ESG Transformation
Within this expanding ecosystem, several AI technologies are leading the way: Machine Learning (ML), Natural Language Processing (NLP), Deep Learning, Predictive Analytics, Generative AI, and other advanced tools. In 2024, Generative AI stood out prominently, holding the largest share among these technologies, reflecting its rising role in simulation, scenario modelling, and automated reporting.

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End-User Sector Dynamics-ESG Across Industries
On the demand side, end-user industries such as Energy & Utilities, Manufacturing, Retail, Financial Services, Healthcare, Information Technology, Consumer Goods, Government & Public Sector, and other verticals are actively embedding AI to elevate ESG outcomes. These sectors vary in their adoption speed and footprint, with Energy & Utilities often setting the pace due to high regulatory and sustainability stakes.

Segment-Level Market Share & Size 2024
In 2024, Generative AI commanded the largest share among technology categories-over 41.8%-owing to its prowess in automated ESG content generation, synthetic data creation, and scenario simulation. Meanwhile, the Data Collection & Analysis use-case held more than 37.3% of the market, reflecting its critical role in tackling fragmented ESG data and enabling compliance-ready disclosures.
Building & Construction led the verticals in share-with over 31.7% of the market in 2024, highlighting infrastructure's centrality in sustainability transformation.
Thus, the market size breakdown shows a clear hierarchy: Generative AI and Data Collection & Analysis dominate technology and functionality, respectively, while sectors like Energy-related construction leverage the largest portion of AI-in-ESG spend.

Descriptive Narrative of Segments & Market Share
Over half of the AI in ESG & sustainability investments in 2024 flowed into Generative AI, as businesses sought tools to craft reports and anticipate regulatory outcomes via synthetic data. Meanwhile, even though data gathering and analysis is a more bread-and-butter capability, it captured over one-third of all spending-serving as the backbone for trustworthy ESG intelligence. On the vertical side, Building & Construction, an industry with heavy material and carbon intensity, garnered nearly a third of the total market, as infrastructure projects and green building standards propelled demand for AI-powered lifecycle, energy, and materials optimisation solutions. Sectors like Energy & Utilities and Manufacturing, closely allied to building infrastructure, also absorbed significant portions, while Financial Services, Retail, Healthcare, IT, Consumer Goods, Government & Public Sector, and an array of others trailed by adopting AI-enabled ESG platforms, each at varying adoption velocities in 2024.

USA Market Insight
In the United States, the AI in ESG & Sustainability market was valued at US$ 48 billion in 2024. That figure is part of North America's broader footprint, which accounted for roughly 43.8% of global share US$ 79.8 billion in 2024. The U.S. alone is expected to grow at a potent CAGR of 26.7%, outpacing global average growth, driven by rising SEC disclosure mandates, institutional investor pressure, and enterprise sustainability strategies that increasingly rely on AI-across carbon accounting, biodiversity tracking, labor auditing, and ESG scoring tools.

Japan Market Overview
Broader M&A and ESG tech trends illustrate that Japanese institutions are intensifying clean-energy and sustainability investments. A recent strategic development exemplifies this: Mizuho, one of Japan's leading banks, is acquiring the London-based clean-energy advisory boutique Augusta & Co to augment its renewable advisory capabilities across Europe. This move, part of an ESG-focused expansion, is expected to conclude by October 2025. While not a direct AI-in-ESG acquisition, it signals Japanese appetite for expertise in ESG transitions-a likely signal of convergence into AI-driven sustainability domains.

USA & Japan-Recent Industry Trends
AI-driven deals fueling deal value-now hitting a US$ 2.6 trillion year-to-date, up 28% from last year. U.S. megadeals are a key driver, reflecting confidence in AI and ESG as growth vectors.
In Japan, the Mizuho-Augusta & Co acquisition spotlights a strategic push into the clean energy advisory space, blending ESG, sustainability, and advisory capabilities.
Separately, on the industry trends front, a recent op-ed in the Financial Times argues that Buy This Exclusive Report at USD 4350 Only: https://www.datamintelligence.com/buy-now-page?report=ai-in-esg-and-sustainability-market

Concluding Strategic Outlook
Looking ahead, the AI in ESG & Sustainability domain is primed for explosive growth. Generative AI and data analytics remain core pillars, while verticals like building, energy, and manufacturing continue to lead adoption. The U.S. market, fueled by regulatory impetus and tech innovation, is set to expand rapidly. Japan's strategic moves in ESG advisory also signal forthcoming synergy with AI and sustainable finance. Across both regions, M&A trends and thought leadership are steering ESG into a data-led, accountable, AI-powered future.

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