Shaping Sustainable Finance with Artificial Intelligence: A Conceptual Framework
- 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.
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 -