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Purpose

This study explores how sustainable leadership and financial technology (FinTech) adoption influence ethical artificial intelligence (AI) governance outcomes in Bangladesh’s FinTech sector. It further examines the mediating role of ethical AI skills development and the moderating influence of organizational capacity, offering an integrated view of responsible digital innovation in emerging economies.

Design/methodology/approach

A qualitative research design was employed, utilizing semi-structured interviews with six stakeholder groups, including FinTech leaders, compliance officers, regulators, platform users and advocates for financial inclusion. Thematic analysis was conducted using a structured six-phase approach, supported by qualitative data analysis software. A dual-stage literature review guided the conceptual framework and interpretation of findings.

Findings

The study finds that ethical AI governance is strengthened when sustainable leadership is supported by strategic FinTech adoption, embedded ethics training and institutional capacity. Ethical AI skills development plays a mediating role by operationalizing leadership vision, while organizational capacity moderates the effectiveness of leadership and technology strategies on governance outcomes. A moderated-mediation model is proposed to explain these interactions.

Practical implications

The findings offer actionable insights for FinTech firms and policymakers. Organizations should align AI deployment with ethical mandates, invest in workforce capacity-building and establish cross-functional governance mechanisms. Policymakers are encouraged to support national guidelines, certification schemes and capacity-building grants to promote inclusive and transparent digital finance ecosystems.

Originality/value

This study makes a novel contribution by integrating leadership, technology, training and institutional capacity into a unified model of ethical AI governance. It offers original insights into how internal and external enablers can jointly support responsible AI innovation in the context of a rapidly growing FinTech sector.

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