Nexus of Artificial Intelligence, Green Finance and The Banking Industry of Pakistan
Sania Asad, Amiya Bhaumik · International Journal of Computational and Experimental Science and Engineering · 2025
Artificial Intelligence (AI) is a magnificent stride in the digitalization and transformation of businesses all over the globe. AI can be interpreted as the computer/machine’s capability to function without human interaction to provide optimized results. AI technologies imitate human cognitive skills and can yield decisions made on data inputs. AI typically performs the human mind's capable activities. It also refers to developing machines capable of mimicking human behavior AI has revolutionized the banking sector globally. However, according to research conducted by Noreen et al. (2023), the adoption of AI in the banking sector of Pakistan has not reached its full potential. The banking sector in Pakistan has embraced AI acquisition at a growth rate of 12.2 percent. The AI adoption in Pakistani banks is somehow restricted to optimizing risk management, improving customer services, digital identity management, biometric verification and detection of fraud. However, the role of AI goes far beyond the ordinary procedures of automation. AI inclusion has the power to transform the structure of financial services. It can help lay the basis for data analysis to forecast new market trends and constitute the advanced course of action for decision-making. AI, therefore, increases the efficiency of the financial sector leading towards economic sustainability and achieving sustainable goals associated with green finance.