Abstract
<jats:p>The use of artificial intelligence (AI) in ESG communication, and sustainability reporting has made GreenAI a powerful tool for promoting environmental responsibility and getting stakeholders involved. Green AI has the great potential to make things more transparent and facilitate better decision-making but also comes with challenges like the rise of algorithmic greenwashing. This chapter examines how AI-powered sustainability reports,automated reporting systems, and green AI based environmental claims can unintentionally or on unintentionally make false or exaggerated green stories more popular, which can affect stakeholder trust. The chapter will define algorithmic greenwashing and AI as a technology-assisted version of traditional greenwashing that comes with a lack of transparency, data bias, and too much faith in algorithms. This chapter provides a conceptual framework that connects Green AI capabilities, transparency mechanisms, and trust factors among important stakeholders.</jats:p>