Work

Artificial Intelligence in Climate and Sustainable Finance: A Blessing or a Curse?

Year: 2026

Type: article

Abstract: ABSTRACT While there are concerns regarding the sustainability of artificial intelligence (AI), it is a potential ally in the transition toward a greener future. It offers advanced tools for data analysis; risk modeling; and environmental, social, and governance (ESG) assessment. This study provides a systematic literature review and bibliometric analysis on how machine learning techniques are being applied to address climate‐related financial challenges. The results reveal growing adoption of AI in areas such as emissions forecasting, green investment, and sustainability reporting. Based on the findings, there are several ongoing challenges related to data quality, interpretability, and algorithmic bias. While AI can enable a green transition, there are financial and ethical concerns that need to be addressed with robust governance, regulatory oversight, and institutional awareness to ensure that AI acts as a catalyst for financial stability and sustainable development.

Source: Journal of Economic Surveys

DOI: 10.1111/joes.70075

Authors: Filippo di Pietro, Pilar Giráldez‐Puig, Pedro R. Palos‐Sánchez, Zbigniew Korzeb

Institutions: European Commission, Joint Research Center, Universidad Pablo de Olavide, Universidad de Sevilla, Bialystok University of Technology

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Climate action

Open Access status: hybrid

Estimated APC paid: $4,250