AI-Driven ESG Investing: How Artificial Intelligence Is Reshaping Sustainable Finance
Journal Name: Discover Economics & Finance
Abstract
Environmental, Social, and Governance (ESG) investing has become one of the most influential trends in modern financial markets. Although demand for sustainable investing continues to grow, the ESG landscape remains heavily challenged by inconsistent data, subjective scoring methods, and widespread greenwashing concerns. Artificial Intelligence (AI) now offers significant opportunities to address these issues through advanced data processing, predictive modeling, and automated scoring systems. This review examines how AI technologies—particularly machine learning, natural language processing (NLP), and big data analytics—are transforming ESG evaluation and investment strategies. It also discusses current applications, key challenges, regulatory implications, and emerging opportunities in the future of AI-driven sustainable finance.
A Review for Discover Economics & Finance
Environmental, Social, and Governance (ESG) investing has become one of the most influential trends in modern financial markets. Although demand for sustainable investing continues to grow, the ESG landscape remains heavily challenged by inconsistent data, subjective scoring methods, and widespread greenwashing concerns. Artificial Intelligence (AI) now offers significant opportunities to address these issues through advanced data processing, predictive modeling, and automated scoring systems. This review examines how AI technologies—particularly machine learning, natural language processing (NLP), and big data analytics—are transforming ESG evaluation and investment strategies. It also discusses current applications, key challenges, regulatory implications, and emerging opportunities in the future of AI-driven sustainable finance.