Ethics in AI-Driven Sustainable Finance
Quazi Tafsirul Islam, Munshura Hossain Faria · Advances in computational intelligence and robotics book series · 2025
Artificial intelligence (AI) has made its way through sustainable finance to make it more efficient in data-driven decision-making with machine learning (ML) and data analytics while evaluating sustainability risks, optimize resource allocation, and ensuring ensure informed investment decisions. All these are crucial for long-term economic growth, staying within the boundaries of the Environmental, Social, and Governance (ESG) framework that opens a future scope for technology-driven financial practices along with global sustainability goals. However, along with the profound blessings, AI has brought many systematic risks like bias, lack of ethical governance, data privacy, regulatory issues, exploitation of developing countries, etc. AI is still developing and should be observed and regulated correctly. These unregulated AI systems in finance pose significant risks to Sustainable Development Goals (SDGs). Hence, this chapter stresses the significance of ethical governance with competent regulation, which promotes sustainability without impeding growth.