Green Intelligence: AI and Sustainable Finance Strategies for the Next Decade

Abstract

The rising pressure of climate change, resource drain, and social inequality have enhanced the necessity to possess sustainable finance forms that have an advantageous intention on the financial decision-making that is environmentally and socially minded. In this context, artificial intelligence (AI) has become a revolution that allowed generating what may be referred to as green intelligence strategic application of AI technologies to the improvement of sustainable finance projects. This paper explains the way AI will contribute to changing the sustainable finance policies over the next 10 years, specifically, to make the financial market evaluation of the environmental risks more effective, to distribute the capital in the most efficient manner, and to provide the financial market with transparency. The research is based on the fact that, based on interdisciplinary sources in the domains of finance, environmental economics, and information systems, the integration of machine learning, big data analytics, and predictive models into the analysis of green investment, climate risk analysis, ESG (Environmental, Social, and Governance) performance metrics are discussed. The paper also examines the opportunities of AI-driven tools to reduce information asymmetry, increase the effectiveness of regulatory compliance, and achieve long-term value creation in a compromise between profitability and sustainability goals. At the same time, it also critically discusses one of the key concerns connected with the adoption of green intelligence the problem of data quality, ethical considerations, bias in the algorithm, and the complexity of governance. This paper will provide a future outlook of AI serving as an actor of sustainable financial change by putting all current tendencies and advancements into single research. The findings have shown that AI governance systems and intersector collaboration are required to ensure that the technological innovation can contribute to the global sustainability objectives. In conclusion, the research paper can be used in the development of the sustainable finance discussion because it shows how green intelligence can be used to address the gap between technological innovation and sustainable financial management in the next decade.