ETHICAL INVESTMENT IN THE AGE OF AI – THE IMPACT OF MACHINE LEARNING USING ESG FRAMEWORK

In today's era of investment, investors anticipate key corporate earnings report, as India's financial markets are experiencing continuous movements. Also, today AI plays an important role in investment industry. Nowadays many financial institutions and hedge funds extensively used AI for algorithmic trading, portfolio management and its optimization, risk assessment. The awareness among investors regarding AI in investment depends upon various factors like investors experience, knowledge level and exposure to financial technology. Retail investors use AI-driven robot-advisors and trading apps. It is essential to assess whether companies adopting AI in investment align with ethical standards under the ESG framework.

The main aim of this research is to find out the interest of investors in investment using AI technology, the role of AI in investing transforms the investment landscape using ESG Framework. The data were collected through structured questionnaire, total 49 respondents were responding the same and case studies were reviewed for further clarifications. The study examined AI-driven investment platforms for ethical investing. Findings revealed that most investors are beginners or intermediates, leading to limited awareness of AI in investment and a lack of trust in machine-driven decisions. However, some investors appreciate AI’s ability to reduce human errors, enable faster trading, and enhance decision-making. Despite these benefits, integrating AI into ethical investment faces several challenges, highlighting the need for greater awareness and transparency.