The possibility of direct integration with renewable electric sources adds more potential to the electrochemical method as a promising route for CO2 conversion. Previous experimental breakthrough reveals that Au25(SR)18− nanoclusters having 25 gold atoms and 18 protecting thiolate ligands can be utilized as catalysts for CO2 electroreduction to CO. The reason for its observed activity toward CO2 conversion is of fundamental importance that needs to be explained. Herein, the progress made in the first‐principles mechanistic studies of the reduction process is described. Contrary to long‐standing assumptions, the fully ligand protected version is not the active catalyst because of the weak adsorption of the relevant intermediates. Instead, the calculations based on computational hydrogen electrode method reveal that the reduction process is facilitated by a thermodynamically stable yet structurally inhomogeneous active site. This reaction center binds the intermediates in such a way that the process can occur at low overpotentials. The results point to the role of inhomogeneity in the surface region for this class of materials as a critical factor promoting the CO2 conversion process under electrochemical environment.