ESG and AI-Driven Governance Transformation in the Construction Industry: A Case-Based Analysis from Slovenia

Authors

Nora Pavićević
University of Maribor, Faculty of Economics and Business
Jernej Belak
University of Maribor, Faculty of Economics and Business

Synopsis

The construction industry is one of the most structurally complex and institutionally regulated sectors, characterized by project-based production, fragmented value chains, and strong exposure to regulatory frameworks. In recent years, this complexity has been intensified by the growing institutionalization of ESG principles and the accelerating diffusion of digital technologies, particularly artificial intelligence. While ESG increasingly functions as an integrated governance architecture shaping strategic decision-making and risk management, the construction sector remains among the least digitalized industries. Although AI-supported tools offer significant potential for performance monitoring, resource optimization, and transparency in reporting, technological adoption alone does not ensure organizational transformation. The presented chapter applies a qualitative case-based research approach focused on a Slovenian construction-sector context. The analysis combines document analysis, ESG governance assessment, and evaluation of AI-supported managerial practices in order to explore the relationship between sustainability transformation and digital governance capabilities. The findings indicate that AI-driven governance mechanisms can significantly support ESG integration, organizational adaptability, and long-term sustainability performance. The study contributes to the growing body of literature on ESG transformation by highlighting the strategic importance of AI-supported governance systems in traditionally conservative industries.

Author Biographies

Nora Pavićević, University of Maribor, Faculty of Economics and Business

Maribor, Slovenia. E-mail: nora.pavicevic@student.um.si

Jernej Belak, University of Maribor, Faculty of Economics and Business

Prof. Dr. Jernej Belak is the Vice-Dean for lnternational Cooperation at the Faculty of Economics and Business, University of Maribor (FEB UM), and a Full Professor of Corporate Governance and Strategic Management. He is also the Head of the Master's Specialization Strategic and Project Management and actively participates in the development of several international study programs and partnerships. His academic work spans teaching at the undergraduate and postgraduate levels, supervising master's and doctoral students, and leading curricular development in the fields of governance, strategic management, credibility, and corporate culture. He has significantly contributed to the integration of the MER Model of Integral Management into academic programs, research activities, and international collaborations. Prof. Dr. Belak's research focuses on corporate governance, strategic management, business ethics, credibility, and organizational culture. He is the author and co-author of scientific monographs, book chapters, and peer-reviewed articles, and has presented his work at numerous international conferences. His scholarly contributions build on and expand the MER Integral Management framework, with emphasis on sustainable and responsible business practices. As Vice-Dean for lnternational Cooperation, he is responsible for strengthening FEB UM's global engagement, coordinating international partnerships, developing double-degree programs, and enhancing student and staff mobility. Under his leadership, the faculty has expanded cooperation with numerous institutions in Europe and beyond, while also intensifying participation in international projects and academic networks. Prof. Dr. Belak is actively involved in organizing international academic events, including the annual lnternational Scientific Conference of FEB UM. He collaborates closely with foreign universities, international faculty, and professional organizations to promote knowledge exchange, cross-border research cooperation, and the internationalization of higher education.Through his academic work, leadership roles, and international engagement, Prof. Dr. Belak contributes to advancing high-quality research and modem governance practices, while fostering an internationally oriented academic environment at FEB UM.

Maribor, Slovenia. E-mail: jernej.belak@um.si

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Published

July 3, 2026

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Pavićević, N., & Belak, J. (2026). ESG and AI-Driven Governance Transformation in the Construction Industry: A Case-Based Analysis from Slovenia. In J. Belak & S. Oberman Peterka (Eds.), Sustainable Governance in the Age of Artificial Intelligence: Interdisciplinary Perspectives on ESG, Digital Transformation and Corporate Responsibility (pp. 1221-1252). University of Maribor Press. https://doi.org/10.18690/um.epf.7.2026.61