The Ministry of Corporate Affairs has begun using AI to send income tax incentive notices. The MCA21 platform has been upgraded with machine based systems, marking the ministry’s entry into the AI era, said Mr. Sanjay Shorey, Director General of Corporate Affairs, Ministry of Corporate Affairs, Government of India at a Seminar on “Blending AI for Effective ESG & Compliance”, themed “Attaining Excellence in Sustainability & CSR Reporting,” held today at PHD House, New Delhi. The event marked the first session of the second edition of the Knowledge Series on Corporate Affairs 2025–26.
He added, today the ESG finds a mention in Section 135 of the Companies Act and the additional section on AI that is recently introduced is well appreciated. However the term ESG was first introduced through the Voluntary Disclosure Guidelines in 2010, and today it is even being taught in schools. As regulators, our primary focus is on the letter ‘G’ which stands for Governance.
Further, he spoke about the interlinkage between CSR and ESG and highlighted that while AI holds immense promise for the future, it also has its limitations. The basic difference is that the human mind combines AI with creativity, while AI lacks creativity. However, AI is equally important in today’s time as individuals and businesses must evolve with changing times.
Mr. Sameet Gambhir, Chair, Corporate Affairs Committee, PHDCCI while speaking about the series, emphasized that ESG and sustainability have become essential in today’s scenario. He informed that companies should not be judged solely on financial parameters, but that non-financial indicators must also be considered.
He expressed satisfaction that ESG is now being actively worked on and added that it is no longer just a term but has become an entire ecosystem. He also urged the Director General to explore ways to blend law compliance, technology like AI, and sustainability for a more effective future. He called ESG as a risk management tool that helps in understanding the DNA of an organization and discussed that sustainability is not a new concept in India. While progress has been seen, much still needs to be achieved in this space as sustainability is the mantra for success in today’s world, concluded Mr. Gambhir.
Mr. Manish Gupta, Former President, The ICSI emphasized that ESG is particularly important for company secretaries, as they are required to comply with the related norms. He emphasised that integrating AI into compliance frameworks is the need of the hour.
He added that ICSI has already begun green building initiatives, and each building is now solar-equipped. He stressed that if ESG can be strengthened with transparency, fairness, and AI, it will lead to a truly futuristic approach.
The vote of thanks was proposed by Mr. Rishi Kapoor, Co-Chair, Corporate Affairs Committee, PHDCCI who expressed hope that every stakeholder would benefit from this Knowledge Series. Mr. Kapoor discussed that professionals often face several challenges, and such forums are crucial for discussing these issues and identifying practical resolutions.
