Our software solution for conducting a Double Materiality Assessment is supported by AI (Artificial Intelligence) to help streamline your workflow. This guide will walk you through where AI is enabled in the platform and how you can use AI Assistant in the Materiality Master effectively.
The materiality analysis is a core concept of the Corporate Sustainability Reporting Directive (CSRD) and it’s European Sustainability Reporting Standards (ESRS).
1. General Information about the AI Assistant in the Materiality Master
Security & Data Privacy
At Materiality Master, we ensure secure and private AI-powered assistance for your Double Materiality Assessment. Our AI uses ChatGPT via a secure API, maintaining strict data protection standards.
How We Protect Your Data
🔒 Secure API & Encryption: Data is encrypted and processed securely.
🔒 No Data Retention: AI responses are generated in real-time, with no storage or training on user data.
🔒 GDPR-Compliant: We follow strict privacy regulations, ensuring user control and anonymity.
🔒 Your Choice: You can decide which information the AI should have about your organization.
Best Practices for Safe AI Use
✅ Review AI outputs before applying them.
✅ Avoid entering sensitive data into AI fields.
✅ Use AI as a support tool, not a replacement for human judgment.
We combine AI efficiency with strong security measures to keep your data safe. For any concerns, feel free to contact us!
Adjusting AI-Generated Content
The AI Assistant in the Materiality Master software, generates texts for your Double Materiality Assessment, especially in your stakeholder assessment and IRO creation process. You can:
- Accept the proposed texts by selecting “Apply”
- Ask the AI to shorten or expand the response
- Adjust the response by inserting your comments into the prompt field to regenerate a news response
- Edit or justify the interest and influence levels.
You can switch between different AI-generated versions select the best one.
2. Using AI in the Stakeholder Tab
Adding a Stakeholder
- Go to the Stakeholder tab in your assessment.
- Click “Add a new stakeholder.”
- Select the category (e.g., Employees).
- Choose the expertise (e.g., Company Expertise).
- Enter the name (e.g., HR Representative).
AI Assistant in the Materiality Master for Stakeholder Descriptions
- The star icon within the description field indicates AI assistance is available.
- If the star is grayed out, AI does not have enough information to generate suggestions.
- Once enough details are provided, the AI activates (turns green) and can generate a description.
- AI helps describe the stakeholder’s role and importance in the assessment.
3. Using AI in the IRO (Impact, Risk & Opportunity) Analysis
Creating an IRO with AI Assistance
- Create a new impact, risk, or opportunity (IRO) in the assessment.
- Define the type (Impact Materiality, Financial Materiality, or Not Material).
- Let the AI generate an IRO description. The AI assistant will suggest an IRO description based on:
- The information provided about your company in the “Details” section.
- General knowledge on the respective ESRS topic.
- A built-in IRO database.
Customizing AI-Generated IRO Descriptions
- AI descriptions for IROs can be quite generic, but they can be refined.
- Use the prompt box to add specific details (e.g., “Consider flood risk for our office in Berlin”).
- Click the renew icon to regenerate a tailored IRO.
- The AI updates the description to align with your input.
Defining Additional IRO Parameters
- Materiality (e.g., Financial Materiality).
- Type (e.g., Risk).
- Value Chain (e.g., Own Activities).
- Time Horizon (Short-Term vs. Medium-Term vs. Long-Term).
- Ratings
- Scale
- Scope
- Reversibility
- Probability
Justifying Ratings with the AI Assistant in the Materiality Master
The AI Assistant in the Materiality Master suggests justifications for your defined ratings based on the information provided and general knowledge. You can:
- Expand the AI-generated justification for more details.
- Shorten the text if needed.
- Regenerate the justification if ratings change (e.g., switching from “Medium” to “High” risk).
4. Time-Saving Benefits of AI
- On average, organizations create between 200-300 IROs.
- Manually writing IROs takes about 5 minutes per entry (1.000+ minutes total).
- Each IRO needs on average three ratings. Writing a justification for each rating takes 3+ minutes (1.800+ minutes in total)
- Using AI can reduce this time to just 1-2 minutes per IRO, saving 1.400+ hours of work.
5. Continuous Improvements of the AI Assistant in the Materiality Master
We are constantly enhancing the capabilities of the AI Assistant in the Materiality Master and refining prompts based on user feedback. If you have suggestions, feel free to share them with us!
