Artificial Intelligence (Al) is becoming a powerful tool in helping the financial world move towards a more sustainable future. This project explores how Al is being used to support sustainable finance by making smarter and more responsible decisions. Al can quickly analyse large amounts of financial and environmental data, helping investors and companies understand the social and environmental impact of their actions. It can identify risks related to climate change, monitor ESG (Environmental, Social, and Governance) performance, and even detect greenwashing-when companies pretend to be more eco-friendly than they really are by using tools like machine learning and natural language processing, financial institutions can make better investment choices that support long-term sustainability goals. However, this also comes with challenges. Issues like biased data, lack of transparency in Al systems, and ethical concerns need to be carefully managed.This study looks at how Al is already being used in the real world, highlights its benefits, and discusses the risks involved. The goal is to show how Al, when used responsibly, can play a key role in creating a more sustainable and fair financial system for everyone.
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