IMPACT OF ARTIFICIAL INTELLIGENCE ON SUSTAINABLE FINANCE
DOI:
https://doi.org/10.29121/shodhai.v2.i2.2025.58Keywords:
Artificial Intelligence, Sustainable Finance, ESG, Climate Risk, SDGs, SEBI BRSR, Responsible BankingAbstract
Global sustainability obligations, rising regulatory demands, and climate hazards have made sustainable finance a top priority for the financial industry. Environmental, social, and governance (ESG) integration, risk forecasting, and financial operations transparency are all strengthened by artificial intelligence (AI), which has emerged as a game-changing instrument. This study investigates how AI supports sustainable finance practices using only secondary data from scholarly journals, RBI bulletins, SEBI recommendations, World Economic Forum reports, and international ESG research. According to the analysis, artificial intelligence (AI) optimises climate-risk modelling, automates sustainability reporting, detects greenwashing trends, increases the accuracy of ESG ratings, and encourages ethical investment choices. Data inconsistency, algorithmic bias, a lack of AI governance frameworks, and the high implementation costs are some of the challenges.. The paper concludes that AI is essential for enabling India’s financial sector to align with global sustainability standards and accelerate progress toward SDGs, particularly SDG 7, SDG 8, SDG 9, SDG 12, and SDG 13.
References
Harvard Business Review (2022). AI and Greenwashing Detection.
IMF (2023). Climate Risk Assessment Report.
MSCI (2023). ESG Ratings Methodology.
OECD (2022). AI in Financial Markets.
RBI (2024). Climate and Sustainable Finance Bulletin.
SEBI (2023). Business Responsibility and Sustainability Reporting.
UN EP (2021). FinTech and Sustainable Development.
World Economic Forum (2023). AI for Sustainable Finance.
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Copyright (c) 2025 A. Aniket Vyas, Dr. M.S Suganthiya
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