Leveraging Artificial Intelligence and Machine Learning for Sustainable Financial Technologies: Innovations, Challenges, and Future Prospects

Abstract

The paper explores the transformational potential of AI and ML for developing sustainable financial technologies. As sustainability pressure heightens in the global financial industry, AI and ML are emerging fast as key drivers of innovation for financial inclusion, risk management, green investment, and fraud detection. The study seeks to emphasize the role of AI and ML in surmounting present barriers in the financial ecosystem-access to financial services, quality of data, and regulatory compliances-through a critical review of related literature. The paper further discusses how AI is being merged with other emerging technologies, such as blockchain, and their combined contribution toward sustainable development. While these technologies hold great promise, issues related to data privacy, ethics, and regulatory challenges are still common. This paper also identifies future research directions, calling for ongoing innovation and collaboration across sectors in order to capture the full potential of AI and ML in sustainable fintech. The findings provide valuable insights for policymakers, financial institutions, and researchers operating at the interface between AI, finance, and sustainability.