Chapter 13: Green Banking with AI: Cutting Edge Innovations for Sustainable Financial Solutions

This chapter explores the relationship between artificial intelligence (AI) and green banking, techniques of AI used in green banking, current trends, and new strategies used to support sustainable financial services in emerging markets. This chapter begins with a discussion of the concept of green banking and the basic principles that it is based on, which are designed to support the development of environmentally friendly financial products and services. Theoretical and exploratory study is mainly based on a literature review. Financial institutions in emerging markets can leverage the strengths of sophisticated technologies for several purposes, such as AI-enabled risk assessment and environmental, social, and governance (ESG) reporting, to make sound decisions and adhere to the set sustainability standards. Machine learning (ML)-based analysis assists in the identification of eco-friendly investments, thus helping investors to make the right decisions. In addition, AI has changed how customers are engaged by promoting sustainable behaviors and efficiency in business by reducing paper usage and energy consumption. The lack of data on ESG reporting and assessment standardization made applying AI difficult in financial institutions in emerging markets. The chapter highlighted AI’s potential in evaluating environmental risks, building sustainable investment portfolios, and implementing paperless and energy-efficient operations in green banking in emerging markets. The chapter explains AI’s role in driving environmental responsibility and operational efficiency in the banking sector. In future research, an in-depth analysis can be conducted with the help of data that focuses on particular types of banking institutions.