Proceedings of the Conference on Social and Sustainable Innovation in Technology & Engineering (SASI-ITE 2025)

Shaping Sustainable Finance with Artificial Intelligence: A Conceptual Framework

Authors
Ravi Sankar Pasupuleti1, *, Venkaiah Babu Prathipati2, James Jensy Fernandez2, Seethamahalakshmi Makkena3, Deepthi Thiyyagura4
1Department of Applied Science & Humanities, Tirumala Engineering College, Jonnalagadda, Andhra Pradesh, India
2Department of MBA, Acharya Institute of Graduate Studies, Bangalore, Karanataka, India
3Department of MBA, Layola Institute of Technology & Management, Sattenapalli, AP, India
4Department of Management Studies, A.M. Reddy Memorial College of Engineering & Technology, Narasaraopeta, Andhra Pradesh, India
*Corresponding author. Email: pravisankar615@gmail.com
Corresponding Author
Ravi Sankar Pasupuleti
Available Online 31 December 2025.
DOI
10.2991/978-94-6463-940-7_35How to use a DOI?
Keywords
Artificial Intelligence (AI); Green Finance; Sustainable Finance; Risk Modeling; Governance; Ethical AI
Abstract

The intersection of sustainable finance and artificial intelligence (AI) offers revolutionary opportunities for redesigning green financial systems. Conventional financial models have a tendency to miss the dynamic, systemic, and climate-related risks involved in sustainable investments, and uneven ESG data restricts transparency and accountability. This paper is a conceptual study of how AI can tackle these issues and promote the goals of green finance. An integrated approach is envisioned, framed within four interconnected dimensions: (i) data transformation, allowing harmonization of dissimilar ESG data and improved decision-making; (ii) risk modeling and scenario design, providing predictive analytics, stress testing, and climate scenario simulations; (iii) inclusion and democratization, driving inclusive access to green finance through different data and AI-driven credit assessment; and (iv) ethics, governance, and explainability, ensuring transparent, accountable, and responsible AI use. The model identifies interrelations between technological competencies, sustainability requirements, and ethical aspects and stresses that the influence of AI is contingent on overall incorporation in governance and policy frameworks. This research adds to the theoretical insight on AI-facilitated green finance and offers a model for scholars, policymakers, and practitioners aiming to construct open, robust, and equitable sustainable financial systems.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the Conference on Social and Sustainable Innovation in Technology & Engineering (SASI-ITE 2025)
Series
Advances in Intelligent Systems Research
Publication Date
31 December 2025
ISBN
978-94-6463-940-7
ISSN
1951-6851
DOI
10.2991/978-94-6463-940-7_35How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

TY  - CONF
AU  - Ravi Sankar Pasupuleti
AU  - Venkaiah Babu Prathipati
AU  - James Jensy Fernandez
AU  - Seethamahalakshmi Makkena
AU  - Deepthi Thiyyagura
PY  - 2025
DA  - 2025/12/31
TI  - Shaping Sustainable Finance with Artificial Intelligence: A Conceptual Framework
BT  - Proceedings of the Conference on Social and Sustainable Innovation in Technology & Engineering (SASI-ITE 2025)
PB  - Atlantis Press
SP  - 485
EP  - 497
SN  - 1951-6851
UR  - https://doi.org/10.2991/978-94-6463-940-7_35
DO  - 10.2991/978-94-6463-940-7_35
ID  - Pasupuleti2025
ER  -