AI and FinTech for ESG and Sustainable Finance: Innovations, Challenges, and Opportunities

This book provides a comprehensive analysis of how artificial intelligence (AI) and financial technology (FinTech) are driving the advancement of Environmental, Social, and Governance (ESG) goals and sustainable finance. As the global financial sector undergoes a profound transformation, the integration of AI and FinTech is playing a pivotal role in addressing pressing challenges such as climate change, social inequality, and corporate accountability. This book explores how these technologies are reshaping financial practices, enabling data-driven solutions that enhance transparency, optimize decision-making, and promote inclusive access to financial resources.

The book begins by demonstrating why ESG principles matter to finance today followed by evidence of widening interest in sustainable investment strategies together with responsible financial practices. The text investigates how AI along with FinTech technologies transforms the integration process for ESG factors into decision systems in the financial sector. A key focus of the book is on the innovative applications of AI and FinTech in sustainable finance. It explores how machine learning algorithms analyze large datasets to improve ESG performance metrics, enabling more accurate and timely investment decisions. It explains how machine learning helps analyze large amounts of data to improve ESG performance, allowing for better and faster investment decisions. However, using AI and FinTech in sustainable finance also comes with challenges. The book discusses important ethical concerns, such as bias in algorithms and risks to data privacy. It highlights the need for strong regulations to ensure fairness, transparency, and accountability. Additionally, it looks at how decentralized finance (DeFi) and blockchain can improve trust and traceability in sustainable finance while also addressing cybersecurity risks.

The book presents a future outlook of finance through research compiled from experiences and perspectives of industry experts, academics, and policymakers.