THE SYNERGY OF ARTIFICIAL INTELLIGENCE AND GREEN FINANCE FOR SUSTAINABLE INVESTMENT

Environmental degradation and climate change have created an urgent need for financial support for sustainable development. This study examines how artificial intelligence (AI) can enhance green finance and promote sustainable investment. AI technologies help to improve the assessment of environmental, social, and governance (ESG) factors, and support better decision-making through data analysis. As a result, green financial instruments such as green bonds, green loans, and climate funds become more transparent and efficient.

The study employs a qualitative and conceptual approach, drawing on a review of existing research literature, policy documents, and reports from financial and environmental institutions. Special attention is given to India’s green finance initiatives and policy efforts. The findings represent that AI-enabled green finance helps direct funds toward environmentally responsible projects, particularly in the renewable energy sectors like solar and wind power, while reducing financial and climate related risks.

The study also highlights the important roles of government policies and private sector participation in expanding green finance and supporting sustainable development goals. At the same time, challenges such as poor data quality, ethical concerns, and the need for clear regulatory frameworks remain significant, especially in emerging economies like India. Overall, the study concludes that combining artificial intelligence (AI) with green finance can play a crucial role in achieving long-term development in India.