The Convergence of Artificial Intelligence and Sustainable Finance: Transforming the Financial Landscape
subject: Artificial intelligence; ESG (Environmental social and governance); Impact investing; Innovation; Sustainable finance
description: This chapter examines the transformative impact of Artificial Intelligence (AI) on sustainable finance by emphasizing environmental, social, and governance (ESG) investment choices. This chapter utilized the literature review method to analyse diverse AI models, such as machine learning, natural language processing, and predictive analytics, concerning data analysis, risk modelling, and sustainable product development in the financial industry. Additionally, the study presents a use case of the AI-implemented model in the ESG ratings, which assesses environmental consequences and evaluates investment sustainability. The research also recognized possible challenges and ethical issues in the application of AI in the sustainable investing domain. These challenges highlight the necessity for a comprehensive governance framework and the appropriate implementation of AI. The study contributes to the literature by providing insights into technology advancements and proposing solutions to address sustainable finance requirements. 2025 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
creator: Jha, Pratiksha; Tewari, Seema; Garg, Vikas; Azmi, Shujaat Naeem
source: Green Horizons: Role of AI in Sustainable Finance;pp.149-160
publisher: Springer Science+Business Media
date: 01-01-2025
rights: Restricted Access; Hardcopy may be available in the library
relation: ISBN: 978-981966495-5; 978-981966494-8;
language: English
type: Book chapter
coverage: Jha P., School of Business and Management, Christ University, Bengaluru, India; Tewari S., School of Law, Christ University, Bengaluru, India; Garg V., Symbiosis Institute of Management Noida, Symbiosis International (Deemed University), Noida, India; Azmi S.N., Department of Economics, Ala-Too International University, Bishkek, Kyrgyzstan